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Technical Outlook

Equity benchmarks took a breather tracking muted Asian cues. The Nifty concluded Tuesday’s session at 17656, down 74 points or 0.4%. In the coming session, index is likely to open on a positive note tracking buoyant global cues. We expect index to maintain higher high-low formation amid elevated volatility owing to monthly derivative expiry session. Hence, use dips to create intraday long positions in the range 17810-17840 for target of 17927. Going ahead, we maintain our positive stance and expect Nifty to gradually head towards 18100 in coming weeks. However, bouts of volatility owing to monthly derivative expiry coupled with global uncertainty can not be ruled out. Thus, temporary breather from hereon should not be construed as negative instead dips should be used as buying opportunity. Structurally, formation of higher high-low on the weekly chart signifies revival in upward momentum that makes us confident to revise support base at 17300 as it is confluence of: a) 50% retracement of past two weeks rally 16950-17811 b) 50 days EMA is placed at 17320

Nifty

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