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Technical Outlook

Equity benchmarks extended its losing streak over fourth consecutive week amid escalating geopolitical concerns that led to spike in crude oil prices. The Nifty settled truncated week at 16245, down 2.5%. In the coming session, index is likely to witness gap down opening tracking escalating geopolitical issues. The formation of lower high-low signifies corrective bias. Thus any pullback towards 16030-16070 should be used to create short position for target of 15951.The bias remains negative as the index continues to form a lower high-low led by anxiety around geo political events leading spike in crude oil prices, outcome of UP election and US Fed policy. With today’s session gap down opening index is likely to open below 52 weeks EMA, indicating extended correction. Going ahead, a decisive close below key support threshold of 15800 would lead to extended correction towards 15400 as it is : a)61.8% retracement of CY-21 rally (13596-18604), at 15510B) over past two decade, the average correction post breach of 52 weeks EMA has been 5%, which will mature around 15400

Nifty Daily Chart

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