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Technical Outlook

Equity benchmarks snapped two days pullback tracking subdued global cues. The Nifty settled Wednesday's session on a negative note at 18043, down 190 points or 1%. In the coming session, index is likely open on a positive note tracking firm global cues. We expect, index to trade with a positive bias amid elevated volatility owing to weekly expiry. Thus, intraday dip towards 18060- 18090 should be used to create intraday long positions for target of 18178

Going ahead, we expect the index to consolidate in the 18300-17800 range and form a higher base. Eventually, we expect index to resolve above upper band of consolidation placed at 18300 and gradually head towards all-time high of 18900 in the coming month. Thus, extended breather from hereon should be capitalised on as incremental buying opportunity as we expect the Nifty to hold the key support of 17800 in coming weeks. Despite Wednesday’s up move, India VIX maintained a lower high-low formation on the weekly chart and sustaining below key resistance of 16 for the week indicating low risk perception among participants

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