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Technical Outlook

Equity benchmarks extended profit booking over second consecutive session tracking muted global cues ahead of U.S. Fed meet. The Nifty concluded Tuesday’s session at 16484, down 147 points or 0.9%. In the coming session, index is likely to open on a subdued note tracking muted global cues. Post initial blip, we expect Nifty to stage pullback while sustaining above 38.2% retracement of current up move placed at 16400 levels. Hence, use intraday dip towards 16434-16454 for creating long position for the target of 16545. The index is undergoing healthy retracement of past six sessions sharp up move. Thus couple of day’s extended breather from hereon can not be ruled out wherein stock specific action would prevail amid progression of Q1FY23 earning season which will help index to cool off the overbought conditions. However, such a breather ahead of U.S Fed meet outcome that coincided with monthly expiry should not be construed as negative instead dips should be capitalised as incremental buying opportunity as eventually we expect index to resolve higher and gradually head towards the psychological mark of 17000 in coming sessions

Nifty Daily Chart

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