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Technical Outlook

Equity benchmarks staged a roaring comeback on the back of global recovery post Monday’s sharp decline. Nifty recorded biggest single day gains of 510 points since February 2021. In the coming session, index is likely to open on a positive note tracking firm global cues. We expect Nifty to extend ongoing pullback while maintaining higher high-low formation. Thus, after a positive opening use dip towards 17195- 17225 for creating long position for target of 17314

Going forward, follow through strength to Tuesday’s high of 17375 would be required for acceleration of upward momentum towards 17600 in coming weeks. Else prolonged consolidation in the broader range of 17350- 16800 with a positive bias. Key point to highlight is that, in spite of elevated volatility the India VIX has failed to surpass key resistance of 24 levels. We expect further cool-off in India VIX which would lead to revival in the market. We expect, Nifty to resolve higher and head towards 17600 as it is confluence of: A) 80% retracement of February decline at 17600 B) Last week’s high is placed at 17640

Nifty Daily Chart

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