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Technical Outlook

Equity benchmarks witnessed a lacklustre session amid mixed global cues. The Nifty remained unchanged ahead of monthly expiry session as index settled Tuesday’s session at 18118. In the coming session, index is likely to open on a flat note tracking muted global cues. We expect, index to hold psychological mark of 18000 and witness stock specific activity amid expiry induced volatility. Thus, intraday dip towards 18040-18072 should be used to create intraday long positions for target of 18158

The index has been sustaining above the 20 day’s EMA over past couple of sessions, which had been acting as a stiff resistance over the past five weeks, indicating a revival of upward momentum amid elevated volatility ahead of Union Budget coupled with ongoing earning season. We expect, index to resolve higher and gradually head towards 18500 in coming weeks as it is 61.8% retracement of December decline (18887-17774). In the process, extended correction would find its feet around key support of 17800. Thus, any dip from hereon should not be construed as negative instead that should be capitalised as incremental buying opportunity.

Nifty Daily Chart

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