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Technical Outlook

Equity benchmarks settled lower after a choppy trading session as participants remained cautious ahead of US FOMC decision. The Nifty ended Wednesday’s session at 15692 down 40 points or 0.25%. In the coming session, index is likely to open on a positive note tracking pullback in global market. Going ahead, holding 15700 and sustainability above 15850 needed for technical pullback. Hence, use intraday dip towards 15720-15752 for creating long position for the target of 15837

The index has approached key support of 15700 (which has been held on multiple occasions over past three months) ahead of global event of US FOMC meet. Going ahead, holding 15700 post event of FOMC meet would keep pullback option open. Else, prolongation of corrective bias towards 15400 can not be ruled out. Further, for sentiment to revive, index needs to form higher high-low on weekly timeframe along with improvement in market breadth. On the upside, 16200 would act as key hurdle as it is Monday’s gap down area (16202-15878) coincided with 50% retracement of current decline

Nifty Daily Chart

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