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Technical Outlook

Equity benchmarks concluded monthly expiry session on a positive note, tracking firm global cues. The Nifty settled the session at 17081, up 129 points or 0.8%. In the coming session, index is likely to open on a positive note tracking firm global cues. We expect, index to continue with its pullback while maintaining higher high-low formation. Hence, use intraday dip towards 17172-17205 to create intraday long positions for target of 17290 with a stoploss of 17133. Going ahead, we expect index to resolve above upper band of past 12 sessions range 17200-16800, gradually paving the way for heading towards 200 days EMA placed at 17500. Structurally, index is undergoing time-wise correction while absorbing host of negative news globally, after approaching lower band of four months falling channel. In the process, weekly stochastic approached oversold territory (placed at 18), indicating impending pullback. Thus, dips should be looked for accumulating quality large caps in a staggered manner as it is a good time to construct portfolio from medium term perspective.

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