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Technical Outlook

Equity benchmarks snapped two weeks winning streak and concluded the week on a subdued note amid global volatility. Nifty ended the week at 16985, down 3%. In the coming session, the index is likely to open on a negative note tracking subdued global cues. Post negative opening, we believe supportive efforts to emerge around key support of 16800. Hence use dip towards 16820-16855 for creating long position for target of 16939.

Since November low of 16782 Nifty has formed a higher low during last week at 80% retracement. At current juncture as well, over past five sessions index has retraced 80% of preceding four sessions up move (16892-17640). The slower pace of retracement signifies inherent strength that makes us believe index would form a higher bottom and gradually head towards higher band of consolidation placed at 17500. The index has approached the maturity of pricetime wise correction. Thus, any dips from here on should be capitalized as incremental buying opportunity.

Nifty Weekly Chart

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