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Technical Outlook

The equity benchmark snapped three days winning streak tracking subdued global cues. The Nifty concluded Wednesday’s session at 18285, down 63 points or 0.3%. In the coming session, index is likely to open on a muted note tracking subdued global cues. After initial blip we expect supportive efforts to emerge from 18200 mark. In the process, volatility would remain high owing to monthly derivative expiry. Hence, use intraday dip in May future towards 18190-18222 to create intraday long positions for target of 18307 with a stoploss of 18153.

Going ahead, we expect index to prolong the ongoing consolidation in the broader range of 18500-18000. Key point to highlight is that, over past four sessions index has retraced 90% of preceding three sessions up move. The lack of faster pace of retracement on either side signifies prolongation of consolidation amid stock specific action. In the process, bouts of volatility owing to monthly expiry week coupled with global volatility can not be ruled out. Therefore, dips should be capitalized to accumulate quality stocks in a staggered manner.

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