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Technical Outlook

Equity benchmarks snapped three weeks winning streak post RBI policy outcome amid weak global cues and pressure on domestic currency due to higher crude prices. The Nifty ended the eventful week at 16202 down 2.3%. In the coming session, index is likely to open with a negative gap tracking weak global cues. The formation of lower high-low indicates continuance of downward momentum. Hence, use intraday dip towards 15960-15992 for creating short position for the target of 15871

The formation of lower peak and trough signifies prolongation of corrective bias. However, strong support for the Nifty is placed at 15700. Key point to highlight over past three months is that, index has managed to hold the key support threshold of 15700 on multiple occasions, despite elevated global volatility. Going forward, for sentiment to revive, index needs to form higher high-low on weekly timeframe along with improvement in market breadth. In the process, volatility would remain high ahead of US FOMC meet.

Nifty Daily Chart

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