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Technical Outlook

Equity benchmarks extended gains over second consecutive week as cool off in commodity prices and VIX boosted the market sentiment that provided impetus to the global recovery. The Nifty ended the truncated week at 17287, up 4%. In the coming session, index is likely to open on a positive note amid firm global cues. We expect the index to trade with positive bias while maintaining higher high-low. Hence after a positive opening use intraday dips towards 17300-17325 for creating long position for target of 17413

The formation of higher peak and trough along with multi sector participation signifies positive bias. Further, cool off in VIX, crude oil prices and easing of geopolitical concerns have provided impetus to gradually extend the ongoing rally towards 17900-18000 mark in coming months as it is 80% retracement of entire corrective phase since October 2021. The Nifty has witnessed a sharp rally of 1670 points over past two weeks. Thus, healthy retracement of past two weeks rally cannot be ruled out which should be capitalized as incremental buying opportunity

Nifty Daily Chart

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