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Technical Outlook

Equity benchmarks extended gains over second consecutive session tracking recovery in global markets. The Nifty settled Monday's session at 17312, up 126 points or 0.7%. In the coming session, index is likely to witness gap up opening tracking buoyant global cues. We expect index to trade with appositive bias while forming higher high-low formation. Hence, use dips to create intraday long positions in the range 17380-17410 for target of 17497

We expect index to endure its positive momentum and gradually resolve above the upper band of consolidation placed at 17500 levels. Eventually, we expect index to accelerate upward momentum towards psychological mark of 18000 in coming weeks. However, such a move would be in a nonlinear fashion amid global volatility. Thus, any cool off from hereon should be capiatlised to accumulate quality stocks as buying on dips strategy has been faring well over past couple of weeks. Over past three weeks, on numerous occasions index witnessed buying demand in the vicinity of 200 days EMA placed at 16900, thereby rewarding buying on dips strategy amid global volatility.

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