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Technical Outlook

Equity benchmarks started the week on a positive note buoyed by easing lockdown restrictions in the country. The Nifty extended its record setting streak and settled Monday’s session at 15752, up 81 points or 0.5%. In the coming session, we expect Nifty futures to trade with a positive bias while maintaining higher high-low formation. Hence, use intraday dip towards 15720-15747 to create long for target of 15830.

The elevated buying demand backed by improving market breadth displays inherent strength that augurs well for index to resolve higher and eventually extend the rally towards our revised target of 16100 in June 2021. We believe, revived traction in BFSI, IT, Auto, Consumption and infra would drive index higher as it cumulatively contributes more than 60% weightage in the benchmark. Our earmarked target of 16100 is based on following observations: a) Price parity of post budget rally (13597-15432), projected from April low of 14151, at 16055 b) Past two months consolidation (15140-14150) breakout target at 16120

Nifty Daily Chart

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