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Technical Outlook

Technical Outlook Equity benchmarks snapped past two weeks winning spree and concluded the week on a subdued note. The Nifty dropped 1.2% to settle for the week at 18115. In the coming session, the index is likely to open on a flat note tracking muted Asian cues. We expect index to maintain the rhythm of not correcting for more than 4 sessions in a row, since April 2021. Hence, use dip towards 18065-18095 for creating short position for target of 18185

Going ahead, we expect buying demand to emerge from 18000-17800 range as we do not expect key support threshold of 17800 to be breached. Key point to highlight during ongoing corrective phase is that, the index has been retracing recent sharp up move as it filled the three positive gaps seen during last week. We believe such price action would make market healthier. The ongoing sectoral churn, pricing in the Q2FY22 earnings which is a healthy sign for structural up trend, wherein Banking, capital goods and realty continued to relatively outperform.

Nifty Weekly Chart

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