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Technical Outlook

Equity benchmarks resumed up trend after two days breather fuelled by firm global cues. The Nifty gained 91 points or 0.5% to settle Monday’s session at 18118. In the coming session, index is likely to open on a positive note tracking buoyant global cues. We expect, index to endure its upward momentum while maintaining higher high-low formation. Thus, intraday dip towards 18130-18162 should be used to create intraday long positions for target of 18249

Key point to highlight is that, the index has settled the Monday’s session above 20 days EMA which had been acting as a stiff resistance over past five weeks, indicating revival of upward momentum that makes us believe, index would resolve higher and gradually head towards 18500 in coming weeks as it is 61.8% retracement of December decline (18887-17774). In the process, we do not expect index to breach the key support of 17800 amid global volatility. Thus, any cool off from hereon should be used as incremental buying opportunity.

Nifty Daily Chart

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