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Nifty

• The index witnessed a gap down opening (18122-18050) and gradually inched southward. However, buying demand from the psychological mark of 18000 helped the index to recoup intraday losses (recovered >230 points from days low of 17992) and ended the session on a positive note. The daily price action formed a bull candle with small shadows on either side, indicating positive bias amid elevated volatility

• Going ahead, we expect the index to trade with a positive bias and head towards the upper band of the consolidation at 18300. We believe past three week’s breather after 13% rally helped the index to cool off weekly stochastic oscillator (currently at 19) and form a higher base that has paved the way for the next leg of the up move. In the process, bouts of volatility owing to global development should be capitalised on as incremental buying opportunity

• Since June 2022 lows, price wise the index has not corrected for more than 8% and time wise decline has not extended for more than three consecutive weeks. In the current scenario, we expect the index to maintain the same rhythm as it has already corrected 6% over the past three weeks. We believe strong support for the Nifty is placed at 17500 where extended correction would get anchored, as key support of 17500 is confluence of: a) 61.8% retracement of October-December rally 16748-18887 is placed at 17565 b) 200 days EMA is placed at 17442 c) Price parity of September 2022 decline (18096 – 16747) projected from all time high of 18887 is placed at 17480 • The broader market indices have shown decent recovery of last week’s decline, indicating inherent strength. Going ahead, we expect the index to undergo healthy consolidation and form a higher base to ride next leg of up move

• In the coming session, index is likely open on a positive note tracking firm global cues. We expect, index to extend ongoing pullback towards 18300, going ahead. Thus, intraday dip towards 18270-18302 should be used to create intraday long positions for target of 18388

Nifty Bank

• The daily price action formed a strong bull candle as on expected lines buying demand emerged from the intraday support area of 42400 -42500 and closed firmly above the 43000 levels . The index in the process also closed above the 20 days EMA which was acting as a hurdle in the last three sessions (currently placed at 42932 levels)

• Going ahead a follow through strength and a close above 43600 levels being the 80 % retracement of the last two weeks breather (44151 -41570 ) will open upside towards the all time high of 44151 levels in the coming sessions .

• The index has almost retraced its 80 % of the preceding eight sessions decline (44151 -41570 ) in just four sessions . A faster retracement signals strength and a positive price structure . The Bank Nifty continues to outperform the benchmark indices

• The weekly stochastic seen consolidating around the neutral reading of 38 signalling consolidation with positive bias likely in coming sessions

• The Bank Nifty has immediate support at 41600 mark as it is the confluence of (a) 38 . 2 % retracement of the previous rally (37387 -44151 ) at 41567 (b) the major consolidation breakout area is also placed at 41600 -41800 range

In the coming session, the index is likely to open on a positive note tracking firm global cues . In today’s session, index to maintain positive bias and extend the current pullback towards 43600 levels . Hence after a positive opening use intraday dips towards 43290 -43370 for creating long position for a target of 43630 , with a stop loss of 43180 .

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