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Technical Outlook

Equity benchmarks surpassed 17000 mark for the first time and recorded fresh all time high of 17153. The Nifty settled Tuesday’s session at 17132, up 200 points or 1.2%. In the coming session, index is likely to open on a flat note amid soft global cues. We expect the index to trade with positive bias while maintaining higher high-low. Hence use intraday dips towards 17090-17115 to create long for target of 17198.

The formation of higher high-low backed by across sector participation signifies inherent strength which makes us reiterate our constructive stance. We believe, a decisive close above 17200 would open the door for next leg of up move towards 17600 in coming weeks. Key point to highlight is that, the Bank Nifty (which carries 37% weightage in Nifty) is placed at 3 months high. The revived traction in banking stocks along with capital goods and consumption would drive Nifty higher. However, bouts of volatility after 11% rally over past five weeks in Nifty can not be ruled out. Thus, temporary breather from here on should be capitalised to accumulate quality stocks

Nifty Weekly Chart

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