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Technical Outlook

Equity benchmarks drifted downward over fourth session in a row as anxiety around Fed rate hike resurfaced, weighing down market sentiments. The Nifty settled the Wednesday’s session at 17554, down 272 points. In the coming session, index is likely to open on a positive note tracking mixed global cues. However, breach of past two weeks low signifies corrective bias. Thus, intraday pullback towards 17645-17678 should be used to create intraday short positions for target of 17557

The formation of lower high-low on the weekly chart displays resurgence of corrective bias. Going ahead, for a meaningful pullback to materialise, index need to decisively close above previous session’s high, else prolonged corrective bias amid global volatility would prevail while absorbing anxiety around prolonged rate hike. In the process, immediate support for the market is placed around 17200. Meanwhile, on the upside 18000 would act as key hurdle. Structurally, breach of past two weeks low signifies abating upward momentum that makes us believe next key support for the Nifty is placed in the range of 17200.

Nifty Daily Chart

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