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Technical Outlook

Equity benchmarks snapped two sessions decline amid muted global cues. The Nifty ended Monday’s session at 18420, up 0.80%. In the coming session, index is likely open on a flat note amid subdued global cues. The supportive efforts in the vicinity of 50 days EMA placed around 18200 signifies elevated buying demand. Thus, intraday dip towards 18415-18445 should be used to create intraday long positions for target of 18529

Going ahead, we expect index to extend ongoing consolidation amid stock specific action wherein strong support is placed at 17900. Meanwhile, past two week’s high of 18700 would act as key resistance. We believe, the ongoing healthy retracement of preceding nine week’s rally (16750-18887) would help the index to cool off from overbought conditions (weekly stochastic hauled to 40 levels) and subsequently form a higher base paving the way for the next leg of the up move. since June 2022 lows, the index has not corrected for more than three consecutive weeks. With two weeks correction already in place, we expect the market to present a buying opportunity in the coming week

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