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Technical Outlook

Equity benchmarks staged a strong come back after two sessions decline and settled Tuesday’s session on a positive note tracking buoyant global cues. The Nifty zoomed 264 points to end the session at 17177. In the coming session, the index is likely to witness gap up opening tracking firm global cues. We expect index to trade with a positive bias hence use dips towards 17232-17257 for creating long position for target of 17347.

Going ahead, we expect index to trade with a positive bias while sustaining above the key support threshold of 16800 mark and eventually challenge the upper band of consolidation placed at 17500 in coming weeks. Our constructive thesis is based on following observations: A) The lack of faster retracement on the either side signifies prolongation of ongoing base formation in the range of 16800-17500. B) Sharp up move during Tuesday’ session was backed by across sector participation that augurs well for durability of structural uptrend. C) Cool-off in domestic as well as global volatility signifies anxiety around Omicron impact is settling down which would help in healthy base formation.

Nifty Weekly Chart

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