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Technical Outlook

Equity benchmarks started the week on a subdued note. Nifty settled Monday’s session at 14930, down 101 points or 0.7%. In the coming session, follow through strength above Monday’s high (15048) would confirm conclusion of corrective bias and resolve higher. Hence, use intraday dip towards 14910-14942 to create long position for target of 15027.

Going ahead, we expect index to hold Monday’s panic low which is in the vicinity of the key support threshold of 14700 and gradually retest upper band of consolidation placed at 15300 in coming weeks. Therefore, any dip from here on should be capitalized as incremental buying opportunity in quality large caps and midcaps stock. Since September 2020, on multiple occasions index has respected the key support of upward slopping trend line coincided with 50 days EMA and subsequently paved the way for next leg of up move. In current scenario as well Nifty bounced from the aforementioned strong support zone placed around 14700, highlighting inherent strength.

Nifty Weekly Chart

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