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Technical Outlook

Equity benchmarks snapped two weeks corrective phase and concluded truncated week on a positive note. Nifty settled the week at 14880 up 2.6%. In the coming session, index is likely to open on a flat note amid firm global cues.

We expect index to trade with a positive bias while sustaining above Friday’s low (Spot-14692). Hence, use intraday dip towards 14860-14885 to create long for target of 14970. Going ahead, we reiterate our positive stance, as we expect Nifty to gradually retest all time high of 15430 in coming months. Key observation from recent price action that the rallies have started being elongated whereas corrections have been shallower, leading to truncated price action.

In the coming week, we expect index to resolve out from this truncated move and head towards our target of 15100. Over past one-year, intermediate average correction to the tune of 9% have subsequently produced rally back to life highs. We expect market to maintain this rhythm.

Nifty Weekly Chart

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