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Technical Outlook

Equity benchmarks snapped four sessions losing streak and concluded weekly derivative expiry session on a positive note. The Nifty settled the session at 17248, down 27 points or 0.2%. In the coming session, the index is likely to open on a subdued note tracking muted global cues. We expect, index to trade with a positive bias while sustaining above past two sessions identical low of 17190. Hence use dip towards 17235- 17265 for creating long position for target of 17347.

We believe, the Nifty is undergoing a strong base formation around 16800-17000 zone after completing price-wise correction of 10% from life highs of 18600. Currently, index is approaching maturity of time-wise correction as we approach the 9th week of correction, that makes us believe, index would gradually resolve out of upper band of consolidation placed at 17500 and eventually head towards psychological mark of 18000 in coming weeks. Therefore, any dip from here on should be capitalised as incremental buying opportunity to accumulate quality stocks.

Nifty Weekly Chart

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