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Technical Outlook

The equity benchmark extended breather over third consecutive session despite firm global cues. The Nifty settled weekly expiry session at 18130 down 52 points or 0.3%. In the coming session, index is likely to open on a flat note tracking mixed global cues. In the last three sessions it is forming lower high-low in daily chart signalling corrective bias. Hence use intraday pullback towards 18245-18278 for creating short position for the target of 18160, maintain a stoploss at 18314

Going ahead, we expect index to extend the ongoing consolidation amid stocks specific action wherein 18500 would remain as immediate hurdle. However, only a decisive close below psychological mark of 18000 would lead to extended correction. The index has rallied 10% over past eight weeks leading to overbought conditions. Thus, possibility of healthy retracement cant not be ruled out. Hence, dips should be capitalized to accumulate quality stocks amid progression of earning season.

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