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Technical Outlook

Equity benchmarks started the week on a subdued note as it pared Thursday’s gains and concluded Monday’s session on a negative note. The Nifty settled at 14638, down 230 points or 1.5%. In the coming session, the Nifty future is likely to open on a flat note on back of muted Asian cues. We believe, bias would remain corrective after previous session sharp decline.

Hence use pullback towards 14740-14765 for creating short position for the target of 14652 Going ahead, we expect index to prolong the ongoing consolidation in the broad range of 14900- 14400 and form a strong higher base formation that would set the stage for next leg of up move.

Over past ten sessions index has been majorly oscillating in 14900-14400 range. The recent observation indicate that declines are getting more time consuming and shallower in nature. The lack of faster retracement signifies extended consolidation. In the process, stock specific action would remain in focus as we expect broader market to regain upward momentum .

Nifty Daily Chart

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