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Technical Outlook

Equity benchmarks drifted lower tracking weak global cues. The Nifty ended the session at 17038, down 162 points 0.9%. In the coming session, we expect index to trade with a positive bias amid elevated volatility owing to monthly derivative expiry. Hence, use intraday dip towards 16980-17012 for creating long position for the target of 17098 Key point to highlight is that, past seven sessions roller coaster move has been taking shape of a contracting triangle pattern while discounting Q4FY22 earnings and volatile global cues. Thus, we believe a decisive close on the either side of the range would dictate the further course of action in coming sessions. Till then, prolongation of consolidation amid stock specific action would prevail. The ongoing consolidation has helped weekly stochastic oscillator to cool off the overbought conditions and make market healthy. Hence, dips should be capitalized to accumulate quality stocks in a staggered manner as long as Nifty sustains above 16800. On the upside, 17500 will continue to act as immediate resistance

Nifty Daily Chart

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