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Technical Outlook

Equity benchmarks extended breather over fourth consecutive week and concluded volatile week on a flat note at 18030, up 0.4%. In the coming session, index is likely to open on a positive note tracking firm global cues. We expect, index to resolve higher and form a higher high-low, indicating resumption of primary up trend. Thus, intraday dip towards 18050-18082 should be used to create intraday long positions for target of 18167

Nifty has made a strong base around 17800 over past four weeks despite global volatility and in the process undergone shallow retracement. Going ahead, we expect index to witness pre-Budget rally and gradually head towards 18500 in coming weeks. In the process, any cool off from hereon would find its feet around 17800. Thus, dips should be capitalised on to accumulate quality stocks. Our constructive stance is based on following

observations:

a) Dollar index extended decline below 102 and remains in strong downtrend. Historically, weak dollar leads to higher foreign inflows and positive for Indian equities structurally

b) India VIX dipped 5% and settled the week below 15 levels for fourth week indicating low risk perception by market participants

Nifty Daily Chart

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