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Technical Outlook

Equity benchmarks tumbled on Monday's session and closed down by 524 points or 3.5% at 14310 levels. In the coming session, the index is likely to open on a flat note and trade with a corrective bias as intermediate pullbacks have been short lived.

Hence, use intraday pullback towards 14455- 14480 to create short position for the target of 14365. The across sector sell off hauled index at the lower band of consolidation of past four weeks, placed at March low of 14260.

Going ahead, follow through weakness (on a closing basis) below Monday’s low of 14250 would lead to extended correction towards key support threshold of 13900-13800 range, else a pullback attempt amid stock specific action ahead of Q4FY21 result season. Strong support is placed at 13800-13900 levels which we do not expect to be breached hence we advise Investor should adopt strategy of utilising the current declines to accumulate quality large and midcap stocks from medium term prospective.

Nifty Daily Chart

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