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Technical Outlook

Equity benchmarks stated the week on a buoyant note. Nifty scaled to fresh all time high of 15340 and settled Monday’s session at 15315, up 151 points or 1%. In the coming session, we expect index to witness follow through strength to recent consolidation breakout (15257-14977).

Hence, use intraday dips towards 15290-15315 to create long position for the target of 15398 Going head, we reiterate our constructive stance on the Nifty and expect it to head toward our earmarked target of 15500 in the coming weeks as it is 161.8% external retracement of last fall (14754-13596), at 15466.

Key point to highlight is that, the Bank Nifty has reordered a flag breakout, indicating acceleration of prevailing uptrend which augurs well for extension of ongoing rally toward 15500 in Nifty, as Bank Nifty components carries 35% weightage in Nifty. Structurally, the formation of higher peak and trough on the larger degree chart signifies robust price structure which makes us confident to revise support base upward at 14900.

Nifty Daily Chart

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