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Technical Outlook

Equity benchmarks recouped Tuesday’s losses and settled on a positive note ahead of Fed meet outcome. Further, cool off in Crude oil prices and VIX provided impetus to the global recovery. The Nifty ended the session at 16975, up 312 points or 1.8%. In the coming session, index is likely to witness gap up opening tracking buoyant global cues. We expect index to trade with a positive bias while maintaining higher highlow formation. Thus, any dip towards 17180- 17210 should be used to create long position for target of 17295

The formation of higher high-low along with multi sector participation makes us believe, Nifty would endure its northbound journey and head towards 17300 in coming weeks as it is 61.8% retracement of January-March decline (18350-15672). Thus, dips from hereon should be capitalized as buying opportunity as we do not expect Nifty to breach the key support of 16200 in coming weeks

5Nifty Daily Chart (updated)

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