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Technical Outlook

Equity benchmarks concluded truncated week on a subdued note. The Nifty ended the week at 14341, down 1.9%. In the coming session, index is likely to witness gap up opening, indicating positive bias. Hence, use intraday dip towards 14355-14380 to create long for target of 14469.

Going ahead, we expect index to resolve higher and gradually head towards upper band of falling channel placed at 14800 in coming months. Our constructive thesis on the market is based on: a) Since Mar-20, Nifty, Bank Nifty has a maintained rhythm of not correcting more than 9% and 20% respectively. With both indices approaching price wise maturity of correction, we expect Bank Nifty to drive Nifty higher as financials carries 38% weightage in Nifty b) Past two months corrective phase has been captured in a well define falling channel. Over past 2 weeks, index has been forming a base at lower band of falling channel. We expect index to resolve higher and head towards upper band of channel placed at 14800.

Nifty Daily Chart

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