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Technical Outlook

The Indian equity benchmarks followed global markets higher as concerns around the global financial crisis subsided. Nifty closed the week at 17360 levels up 2.5%. In the coming session, index is likely to open on a flat to positive note tracking firm global cues. We expect, index to endure its northbound journey while maintaining higher highlow formation. Hence, use intraday dip towards 17375-17408 to create intraday long positions for target of 17493 with a stoploss of 17338.

The index has logged a resolute breakout from recent consolidation 17200-16800 underpinned by gap up opening (17080-17210) in Friday’s session, indicating acceleration of upward momentum. In the upcoming truncated week, we expect index to resolve higher and head towards 17600 as it is confluence of 200 days EMA coincided with upper band of falling channel and the implicated target of consolidation breakout (17200-16800). Thus, any dip from hereon towards 17100 should be looked for accumulating quality stocks in a staggered manner as it is a good time to construct portfolio from medium term perspective.

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