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Technical Outlook

Equity benchmarks started the truncated week on a subdued note as index extended breather over third consecutive session. The Nifty settled the Monday's session at 14239, down 133 points or 0.9%. In the coming session, Nifty future is likely to open on a negative note tracking weak global cues. We expect index to extend the breather amid stock specific action.

Hence, use intraday pullback towards 14230-14255 in Nifty January future for creating short position for target of 14142 We believe, the prolonged breather from here on would make market healthy ahead of key major event of Union Budget and eventually help index to form strong higher base formation around 14000, as we do not expect index to breach the strong support zone of 14000-13800.

Meanwhile, stock specific activity would continue amid elevated volatility as we proceed the Q3FY21 earning season. Hence, any dip from here on should be capitalized as incremental buying opportunity as we expect Nifty to head towards 14900 in coming month.

Nifty Daily Chart

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