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Technical Outlook

Equity benchmarks started the week on a positive note amid muted global cues. The Nifty settled Monday’s session at 18068, up 152 points or 0.85%. In the coming session, the index is likely to open on a soft note amid muted global cues. We expect, index to trade with a positive bias while maintaining higher high-low formation. Hence, use dip towards 18075-18105 for creating long position for target of 18189

Going ahead, we expect index to extend the pullback toward upper band of consolidation placed at 18200 in coming sessions. A decisive close above 18200 would open the door for next leg of up move else prolonged consolidation (17600-18200) amid stock specific action that would make market healthy after 20% rally seen over past over past three months (15513-18604). Amidst secular bull trend, secondary correction is a norm which generally paves the way for next leg of up move. Hence, ongoing corrective phase should not be construed as negative, instead dips should be capitalised on to accumulate quality stocks.

Nifty Weekly Chart

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