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Technical Outlook

Equity benchmarks continue their losing streak for fourth session in a row ahead of key US and domestic inflation data. The Nifty closed the session at 16167, down 73 points or 0.45%. In the coming session, index is likely to open gap down amid weak global cues. Post gap down opening we expect supportive efforts to emerge from 15900 zone. Hence, use dip towards 15920-15955 should be used for creating long position for target of 16037

In each of past seven sessions index has formed lower high on daily time frame. After a gap down open on Thursday, holding Wednesday’s panic low of 15992 would lead to a breather in downward momentum from oversold readings (weekly stochastics 10). However, a decisive breach below 16000 would lead to panic selling in coming sessions leading index towards March low of 15700. On the contrary, decisive high above previous session high would be required for the meaningful pullback to mateliazlie in the coming sessions.

Nifty Daily Chart

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