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Nifty : 17393

Technical Outlook

• The Nifty witnessed a gap up opening (17136-17235) and inched upward throughout the session as intraday dips were bought into. The daily price action formed a bull candle carrying higher high-low, indicating extended pullback. As a result, index approached in the vicinity of upper band of ongoing consolidation 17500-16800. In the process, broader market performed in tandem with benchmark

• Going ahead 17500 remains a crucial hurdle for Nifty. Meanwhile, a base formation in the 16800-17500 range with positive bias, is expected to continue amid stock specific action as markets price in Q4FY22 earnings. Thus, dips should be considered to accumulate quality companies in a staggered manner. On the upside, 17500 will be the key level to watch levels as it is confluence of:

• a) The Monday’s falling gap area (17475-17238)

• b) 50% retracement of mid-April decline (18114-16825)

• Structurally, the index has undergone healthy retracement as it rebounded after retracing 50% of the entire March 2022 up move coincided with 200 days EMA placed at 16850. The formation of higher trough on the weekly chart signifies elevated buying demand that makes us confident to revise support base at 16800

 • The broader market indices have taken support in the vicinity of 50 days EMA and now bouncing back. Historically, in a secular bull market intermediate correction towards 50 days EMA help index to cool off the overbought condition and make market healthy. We believe, base formation from hereon would set the stage for next leg of up move

In the coming session, index is likely to witness gap down opening tracking weak global cues. We expect, 17500 to act as stiff resistance in the coming sessions. Hence, use pullback towards 17330-17366 for creating short position for the target of 17243

NSE Nifty Daily Candlestick Chart

Nifty Bank: 36816

Technical Outlook

• The daily price action formed a bull candle with a higher high - low indicating pause in downward pressure . The last two sessions price action remained contained inside Tuesday bear candle signaling consolidation after the recent corrective decline .

• Index is currently seen rebounding from the support area of 36000 being the confluence of 200 -dema (currently at 36191 ) and 80 % retracement of the previous up move (35016 -38759 ) . However, only a closing above 37300 would signal acceleration of momentum, else base formation in the range of 37300 - 36000 is expected in the coming sessions

• On the higher side 37300 is likely to act as immediate hurdle being the confluence of the Monday’s gap down area and the 50 % retracement of recent decline (38759 -35926 )

• In the smaller time frame the index has already taken 11 sessions to retrace less than 80 % of the preceding six sessions up move (35016 -38765 ) . A shallow retracement signals an overall positive price structure

• The index has strong support at 35000 levels being the confluence of the following technical observations :

• 61 . 8 % retracement of the entire March 2022 up move (32155 - 38765 ) placed at 34800 levels

• The recent swing low of second half of March 2022 is placed around 35000 levels

• The daily stochastic has generated a buy signal moving above its nine periods average thus validates positive bias in the index in the coming sessions . In the coming session, index is likely to open gap down tracking weak global cues . We expect the index to trade with corrective bias . Hence after a negative opening use intraday pullback towards 36690 -36750 for creating short position for the target of 36430 , maintain a stoploss at 36870

Nifty Bank Index – Daily Candlestick Chart

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