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Technical Outlook

Equity benchmarks ended marginally lower amid elevated global volatility. The Nifty ended the week at 17102, down 0.4%. In the coming session, index is likely to witness gap down tracking weak global cues. The breach of Friday’s low signifies extended correction. Hence, after a negative opening use pullback towards 16990-17025 should be used for creating short position for the target of 16903 Nifty has undergone a strong base formation above lower band of consolidation coincided with 200 days EMA placed around 16800 despite global volatility. In the process, anxiety around US Fed meeting outcome is getting discounted. In the upcoming truncated week, strong support for the Nifty is placed at 16800. Thus, only a decisive close below 16800 post UF Fed meet outcome would lead to extended correction, else prolongation of consolidation in the 17500-16800 range. The ongoing consolidation has helped weekly stochastic oscillator to cool off the overbought conditions, thereby making market healthy. Thus, dips should be capitalised to accumulate quality stocks in a staggered manner. On the upside, 17500 will be the key level to watch

Nifty Daily Chart

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