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Technical Outlook

Equity benchmarks extended their breather over a second consecutive session tracking muted global cues. The Nifty ended the weekly expiry session at 17223, down 23 points. In the coming session, index is likely to open on a positive note tracking mixed global cues. We expect index to trade with a positive bias while sustaining above intraday support of 17150. Hence use dip towards 17190-17222 for creating long for target of 17309

The formation of higher base above 50 day’s EMA signifies pause in momentum after a sharp up move of 11%. We believe ongoing consolidation would make market healthy and set the stage to eventually resolve above the upper band of the ‘Andrews’ Pitchfork’ and gradually head towards 18000 in the coming month. Therefore, temporary breather should be capitalised on as incremental buying opportunity. Our target of 18000 is based on following observations: a) 80% retracement of entire corrective phase since October 2021 (18604-15671) b) downward slanting trend line drawn adjoining October-January highs (18604- 18350)

Nifty Daily Chart

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