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Technical Outlook

Equity benchmarks extended gains over second consecutive session tracking firm global cues. The Nifty settled Wednesday’ session at 17464 up 197 points or 1.14%. In the coming session, we expect index to trade with a positive bias amid rise in volatility owing to RBI policy outcome coincided with weekly derivative expiry. Hence after a positive opening use intraday dips towards 17442- 17478 for creating long position for target of 17563

The follow through strength above Tuesday’s high (17306) confirms resumption of upward momentum that makes us believe, Nifty would resolve higher towards 17600 levels in coming sessions as it is 80% retracement of recent decline (17794-17043. Thus, elevated volatility from hereon owing to RBI’s Monetary policy should be capitalised to accumulate quality stocks to ride next leg of up move. Structurally, despite recent elevated volatility Nifty managed to hold the key support threshold of 16800 and now forming a higher trough, highlighting buying demand at elevated support base.

Nifty Daily Chart

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