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Technical Outlook

The Nifty concluded weekly expiry session on a flat note tracking mixed global cues. The Nifty settled the Thursday’s session at 18297, down 18 points. In the coming session, the index is likely to open on a negative note amid soft global cues. Index to consolidate with corrective bias after recent sharp up move. Hence after a negative opening use intraday pullback towards 18335-18368 for creating short position for the target of 18247, maintain a stoploss at 18403.

Going ahead, we expect index to consolidate in the broader range of 18500-18000 with stock specific action amid progression of earning season. Key point to highlight is that, the index has already rallied 9% over past seven weeks which hauled weekly stochastic oscillator in overbought territory (placed at 90). Thus, dips should be used as incremental buying opportunity as bouts of volatility owing to global development can not be ruled out. We believe, such a breather would make market healthy. Only a decisive close below psychological mark of 18000 would lead to extended correction.

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