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Technical Outlook

Equity benchmarks recovered from early lows to end Monday’s session marginally negative. A breather in rupee depreciation and Brent prices helped sentiments. The Nifty settled at 17241, down 0.43% or 73 points. In the coming session, the index is likely to open on a subdued note tracking muted global cues. Post initial decline, we expect the Nifty to hold 100 day’s EMA at 17090. Hence, use intraday dip towards 17130-17162 for creating long position for the target of 17248

Going ahead, we expect the index to consolidate in the broader range of 17500- 16700 amid stock specific action for a few sessions. The Nifty has rallied 680 points over last week leading short-term oscillator in overbought territory, indicating a couple of days breather ahead of US inflation data cannot be ruled out. However, such a breather should not be construed as negative. Instead, any dip from here on should be used as a buying opportunity amid onset of earning season, to ride the next leg of up move towards 17500. Sustainability above 17500 would lead to acceleration of upward momentum.

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