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Technical Outlook

Equity benchmarks snapped their two session’s pullback and concluded Wednesday's session on a subdued note tracking a spike in crude oil prices amid geopolitical concerns. The Nifty lost 188 points or 1.1% to end the session at 16606. In the coming session, index is likely to open on a flat note tracking firm Asian cues. We expect volatility to remain high owing to weekly derivative expiry along with ongoing geopolitical issues. The formation of higher lows signifies elevated support base. Thus any dip towards 16504-16534 should be used to create long position for target of 16628

Going ahead, sustainability above Monday’s panic low (16350) amid ongoing global volatility would keep pullback option open. Key point to highlight is that, time wise the index has maintained the rhythm of not correcting for more than three consecutive weeks, since April 2020. In the current scenario, as the index has already corrected over past three weeks, we believe the Nifty is poised for a technical pullback from the oversold territory.

5Nifty Daily Chart

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