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Technical Outlook

Equity benchmarks extended gains over second consecutive session. The Nifty settled Tuesday's session at 18132 up 118 points or 0.65%. In the coming session, index is likely open on a negative note tracking muted global cues. We expect, Nifty to consolidate with a positive bias amid stock specific action. Thus, intraday dip towards 17990-18022 should be used to create intraday long positions for target of 18108.

Going ahead, we expect index to extend ongoing pullback towards 18300. We believe, recent breather helped index to form a higher base and pave the way for the next leg of the up move. Key point to highlight is that since June 2022 lows, price wise the index has not corrected for more than 8% and time wise decline has not extended for more than three consecutive weeks. In the current scenario, we expect the index to maintain the same rhythm as it has already corrected 6% over the past three weeks, which hauled the daily and weekly stochastic oscillator to the oversold territory, indicating extension of the pullback. Thus, bouts of volatility owing to monthly expiry should be used as incremental buying opportunity.

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