IGI Logo

Technical Outlook

Equity benchmarks started the F&O expiry week on a positive note as index snapped past four sessions losing streak. The Nifty gained 10 points to settle the session at 18125. In the coming session, the index is likely to open on a positive note tracking firm global cues. We expect index to hold Monday’s low (17968) and stage a pullback. Hence, use dip towards 18070-18100 for creating long position for target of 18189

Going ahead, follow through strength with a close above previous session high (18240) would confirm the pause in ongoing corrective phase and lead to a base formation in coming sessions, else prolonged consolidation amid stock specific action. Key point to highlight since May 2020 is that, on eight out of ten occasions supportive efforts emerged in the vicinity of 20 days EMA, highlighting elevated buying demand. Also, the index has not corrected for more than 3-4% since April 2021. In current scenario, past four sessions 3% decline hauled index near 20 days EMA, indicating limited downside.

Nifty Weekly Chart

To Read Complete Report & Disclaimer Click Here

https://secure.icicidirect.com/Content/StaticData/Disclaimer.html

Views express by all participants are for information & academic purpose only. Kindly read disclaimer before referring below views. Click Here For Disclaimer