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Technical Outlook

Equity benchmarks extended gains over second consecutive week despite elevated volatility spooked by surging second wave of COVID-19 across India. The Nifty concluded the week at 14823, up 1.3%. In the coming session, index is likely to witness gap up opening tracking buoyant cues. However, we expect index to trade with a positive bias while maintaining higher high-low formation. Hence, use intraday dip towards 14925- 14945 to create long for target of 15036.

Going ahead, we reiterate our positive stance on the market and expect Nifty to eventually head towards life-time high of 15400 in the month of May 2021. However, move towards 15400 would not be linear in nature, as bouts of volatility owing to escalating concerns over COVID-19 2nd wave. Therefore, intermediate dips toward 14600 should be capitalised as an incremental buying opportunity in quality stocks. Key point to highlight during recent secondary corrective phase is that, the index has witnessed shallow retracement, indicating robust price structure that augurs well for next leg of up move.

Nifty Weekly Chart

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