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Technical Outlook

Equity benchmarks snapped past seven sessions winning streak as index took a breather on Tuesday and settled the session at 15575, down 8 points. In the coming session, the index is likely to open on a flat note amid mixed global cues. The formation of higher high-low signifies elevated buying demand. Hence, after a flat opening use intraday dip towards 15560-15586 to create long for target of 15675.

We reiterate our positive stance and expect Nifty to challenge the 15700 mark in coming sessions. We believe, a temporary breather at higher levels would make market healthy and offer incremental buying opportunity as the broader positive structure still remains robust.

Despite temporary breather, 83% components of Nifty 500 index are trading above 50 days EMA compared to April reading of 60%. Rejuvenated market breadth signifies inherent strength that augurs well for durability of ongoing up trend. Hence, extended breather from here on should be capitalised to accumulate quality stocks to ride next leg of up move

Nifty Daily Chart

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