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Technical Outlook

Equity benchmarks extended losses over second consecutive week tracking weak global cues amid US Fed rate hike. The Nifty settled eventful week at 17327, down 1.2%. In the coming session, index is likely to open on a subdued note tracking weak global cues. Breach below 50 days EMA signifies continuance of corrective bias. Hence, use intraday pullback towards 17290-17320 for creating short position for the target of 17201

On the structural front, our positive stance remains intact with target of 18300 in October 2022 while 17100, which is August low, is expected to act as key support. In the upcoming monthly expiry week, possibility of extended consolidation in the 17800-17100 range with a stock specific action cannot be ruled out ahead of RBI policy. Thus, dips should be utilized to accumulate quality stocks. We expect extended breather from hereon would get anchored around 17100 mark as it is confluence of 38.2% retracement of recent July-September rally (15858-18096) and 100 days EMA placed at 17100 coincided with August low of 17155

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