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Technical Outlook

Equity benchmarks extended gains over second consecutive session tracking firm global cues. The Nifty ended Tuesday’s session at 17662, up 13 points. In the coming session, index is likely to open on a positive note tracking firm global cues. We expect, index to trade with a positive bias amid budget volatility. Thus, intraday dip towards 17782- 17805 should be used to create intraday long positions for target of 17897

Going ahead, we expect volatility would remain high owing to the Union Budget session followed by US Fed meet. Amidst elevated volatility, we expect index to hold the key support zone of 17500-17300, as it is confluence of key long term moving averages like 200 days EMA and 52 weeks EMA. Thus, extended correction from hereon should be capitalised on to accumulate quality stocks in a staggered manner. In the process, 18300 would act as immediate resistance on the upside. The Nifty is approaching its price and time wise maturity as it entered ninth week of correction against nine week’s rally (16748- 18887) seen during September 2020 to January 2021 wherein it retraced 61.8%, highlighting robust price structure.

Nifty Daily Chart

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