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Technical Outlook

Equity benchmarks snapped two weeks losing streak and concluded on a positive note as Nifty ended the volatile week at 17516, up 2.4%. In the coming session, index is likely to open on a subdued note tracking muted global cues. We expect, index to stage decent pullback post initial blip. Hence use intraday dip towards 17395-17422 for creating long position for target of 17510

After 950 points rally in just five sessions, index underwent minor profit booking. We believe, temporary breather will make market healthy and pave the way to gradually head towards 17900 in February as it is 80% retracement of January 2022 decline (18350-16836). In the process, stock specific action would prevail as the earning season progresses. Historically, in a secular bull market, the breadth indicator based on percentage of stock above 200 DMA of Nifty 500 constituents does not go below its bullish support zone of 50 levels and subsequently stage a decent up move. In current scenario, this sentiment indicator bounced from reading of 50, auguring well for revived buying demand

Nifty Daily Chart

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