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Technical Outlook

Equity benchmarks snapped six sessions losing streak and ended Monday’s session on a positive note as the Nifty settled the session at 15842, up 60 points or 0.4%. In the coming session, index is likely to witness flat opening tracking firm Asian cues. Hence, use intraday dip towards 16760-16792 for creating long position for the target of 15878 Going ahead, we believe a follow through strength along with a decisive close above Friday’s high (16083) would be a necessary for a meaningful pullback to materialise towards 16400 from current oversold reading. The index has been facing difficulty in sustaining above previous sessions high over past 11 sessions. In the process, strong support is placed at 15600 which we expect to hold in the ongoing volatile scenario and gradually head towards 16400 as it is the 38.2% retracement of past four weeks decline (17414-15735). The past five weeks corrective move hauled daily and weekly stochastic oscillator in extreme oversold territory. Historically, after approaching such lower reading, markets have witnessed technical pullback. This in turn affirms our stance of holding key support zone of 15600- 15400

Nifty Daily Chart

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