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Technical Outlook

Equity benchmarks started the truncated week on a flat note as Nifty gained 7 points to settle at 18109. In the coming session, the index is likely to open on a positive note tracking positive Asian cues. We expect, index to trade with a positive bias while sustaining above intraday support of 18050. Hence, use dip towards 18110-18145 for creating long position for target of 18227

The absence of faster pace of retracement on either side indicates extended consolidation in the range of 18200-17700 range which would offer incremental buying opportunity as index approaches price/time wise maturity of correction. Key point to highlight over past 18 months is that, pricewise Nifty has maintained the rhythm of not correcting for more than 7-9% while sustaining above 50 days EMA and timewise intermediate corrections have got arrested within four weeks. As index has already corrected 5.5% over past three weeks, we expect index to hold 17500 and eventually challenge upper band of consolidation at 18200. Hence, dips should be capitalised on to accumulate quality stocks

Nifty Daily Chart

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