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Technical Outlook

Equity benchmarks staged a strong comeback and recovered Monday’s losses tracking firm global cues. The Nifty ended the session at 17315, up 198 or 1.2%. In the coming session, index is likely to open on a positive note tracking buoyant global cues. We expect, the index to trade with a positive bias while forming a higher high-low and extend the ongoing up move. Hence use pullback towards 17365-17395 for creating long position for target of 17482

Going ahead, we expect index to witness follow through strength amid broad based participation and gradually head towards 18000 in coming weeks as buying on decline strategy should continue to work in favor of market participants. Therefore, temporary breather should be capitalized on as incremental buying opportunity. Structurally, the Nifty staged a strong rebound after forming a higher base above 52 weeks EMA. The formation of higher peak and trough signifies rejuvenation of upward momentum that makes us confident to revise support base at 16800

Nifty Daily Chart

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