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Technical Outlook

Equity benchmarks started the week on a buoyant note tracking firm global cues. The Nifty ended Monday’s session at 17086, up 82 points or 0.5%. In the coming session, the index is likely to open on a positive note tracking firm global cues. We expect index to trade with a positive bias and challenge the 17200 mark. Hence after a positive opening use intraday dip towards 17105-17128 for creating long position for target of 17217.Going ahead, decisive close above 17200 backed by improvement in market breadth would lead to extension of pullback towards 17600. Failure to do so would lead to prolonged consolidation amid stock specific action in the broader range of (17200-16600) that would set the stage for next leg of up move.

The index has approached the maturity of price-time wise correction. Price wise, index has maintained the rhythm of not correcting for more than 11% since May 2020. Time wise, the index has arrested secondary correction within nine weeks. In current scenario, index has corrected 11.8% over past nine weeks. Thus, any dip from here on should be capitalised to accumulate quality stocks.

Nifty Weekly Chart

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