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Technical Outlook

The equity benchmark started the week on a buoyant note tracking global recovery owing to US debt ceiling deal. The Nifty surged 100 points or 0.5% to settle the session at 18599. In the coming session, index is likely to open on a flat to positive note tracking mixed global cues. We expect the stock to continue with its positive momentum while maintaining higher high-low. Hence, use intraday dip in June future towards 18635-18665 for creating intraday long positions for target of 18754 with a stoploss of 18597.

Going ahead, we maintain our positive stance and expect Nifty to gradually retest the life time highs of 18887 in the June month. The breakout from recent consolidation 18500- 18000 signifies acceleration of upward momentum that in turn confirms higher base formation around psychological mark of 18000. Thus, any dip from hereon should be used to build quality portfolio from medium term perspective. In the process, we expect broader market to relatively outperform. During recent consolidation market breadth has significantly improved supported by across sector participation as currently 63% of the stocks are trading above 200 days SMA compared to April end reading of 48%, highlighting broader market participation

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