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Technical Outlook

Indian equity benchmarks snapped three week losing streak. Mid/small cap indices made strong rebound (up 5% each) reversing last week’s steep decline, while Nifty gained 1.7% to trade at 18105. In the coming session, index is likely open on a flat note. We expect, index to regain upward momentum post flat opening. Thus, intraday dip towards 18120- 18152 should be used to create intraday long positions for target of 18236. We reiterate our structural positive stance and expect index to resolve higher gradually towards all time high of 18900 in coming weeks. Thus, any dip from hereon would offer incremental buying opportunity as we expect Nifty to hold the key support of 17800 in coming weeks. Our positive bias is further validated by following observations: a) Since June 2022 lows, index has not corrected for more than three consecutive weeks in a row, followed by new high in following month. We expect same rhythm to be maintained

Market breadth has regained strongly in last week corroborating over all bullish stance

India VIX was down 9% and stayed below key resistance of 16 for the week indicating low risk perception amongst participants

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