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Nifty: 17222

Technical Outlook

• The Nifty started the week on a subdued note. However, buying demand in the second half of the session helped the index to recover intraday losses and settle above 17200 mark. The daily price action resembles a hammer like candle carrying small real body with long lower shadow, highlighting elevated support base as in last four out of five sessions strong buying demand emerged in the vicinity of psychological mark of 17000

• The index is undergoing a shallow retracement as over past six sessions index has retraced less than 23.6% of preceding 8 session’s up move. The shallow retracement exhibits inherent strength that makes us believe, the index would resolve above the upper band of the ‘Andrews’ Pitchfork’ (placed around 17300) and gradually extend ongoing up move towards 18000 in April. In the process, we do not expect Nifty to breach the key support of 16800-16700. Hence, dips should be capitalised on as incremental buying opportunity. Our target of 18000 is based on following observation:

• a) 80% retracement of entire corrective phase since October 2021 (18604-15671)

• b) downward slanting trend line drawn adjoining OctoberJanuary highs (18604-18350)

• The broader market indices have been forming a higher base above 52 weeks EMA that has set the stage to witness catch up activity with its large cap peers in coming weeks. Thus, focus should be on accumulating quality midcap stocks

• The strong base formation above 50 days EMA amid shallow retracement displays strength that makes us confident to retain support base at 16800 as it is 61.8% retracement of recent up move (16470-17442), placed at 16842 In the coming session, index is likely to witness gap up opening tracking firm global cues. We expect index to trade with a positive bias while forming a higher high-low, indicating continuance of positive bias. Hence, use intraday dips towards 17290-17322 for creating long position for target of 17409

NSE Nifty Daily Candlestick Chart

Nifty Bank: 35710​​​​​​​

Technical Outlook​​​​​​​

• The daily price action formed a bullish hammer like candle with a small real body and a long lower shadow signaling strong support at lower levels around the 35000 levels .

• The overall bias remains positive and a follow through strength above Monday’s high (35770 ) will open upside towards the last two weeks high placed around 36800 levels in the coming sessions

• We believe any temporary breather should not be seen as negative, instead should be capitalized as buying opportunity in quality banking stocks, a s we expect the index to resolve above last two week highs (36800 ) and gradually head towards 38000 levels in the coming month being the 80 % retracement of the February -March decline (39424 -32155 )

• The short term support base for the index is placed around 33800 levels being the confluence of :

• (a) 61 . 8 % retracement of the last two weeks up move (32155 -36612 ) placed at 33800 levels

• (b) The bullish gap area of 10th March 2022 is also placed around 33800 levels

• Among the oscillators the daily stochastic after the last six sessions breather has approached the oversold territory and is currently placed at a reading of 27 In the coming session, index is likely to open on a positive note amid firm global cues . Index on yesterday session witnessed a sharp rebound from the support area of 35000 . We expect it to continue with its previous session up move Hence after a positive opening use intraday dips towards 35860 -35930 for creating long position for target of 36190 , maintain a stop loss at 35740

Nifty Bank Index – Daily Candlestick Chart

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