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Technical Outlook

Equity benchmarks snapped three day winning streak on Thursday amid global volatility and persistent selling pressure from foreign investors in domestic equities. The Nifty lost 220 points or 1.2% to settle down at 17560. In the coming session, index is likely to open on a flat note tracking mixed global cues. We expect, the index consolidation amid positive bias while sustaining above 17450 mark. Hence use intraday dip towards 17465-17490 for creating long position for target of 17580

The profit booking at higher levels after sharp rally is seen as healthy retracement of run up and therefore should not be construed should not be construed as negative. Instead dips over couple of sessions should be capitalised on to accumulate quality stocks as we expect Nifty to head towards next milestone of 17900 levels in coming week. Key point to highlight is that, the Bank Nifty has resolved out of three weeks consolidation (38850-36375), indicating rejuvenation of up trend. We believe, revived traction in banking stocks would drive Nifty higher in coming weeks as Banking components carries 37% weightage in Nifty

Nifty Daily Chart

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