IGI Logo

Nifty: 17616

Technical Outlook

• The Nifty witnessed a roller coaster move as the Nifty oscillated by more than 1100 points during the day. After an initial up move, profit booking resurfaced from 20 day’s EMA, resulting in the index breaching recent lows marginally. Eventually, a fag end up move helped the index to recoup most intraday losses

• Going ahead, we expect the index to prolong the consolidation in the broader range of 18000-17300 wherein stock specific action would prevail amid progression of earning season. Amid elevated volatility, we expect the index to hold the key support zone of 17500-17300, as it is confluence of key long term moving averages like 200 days EMA and 52 weeks EMA. Thus, extended correction from here on should be capitalised on to accumulate quality stocks in a staggered manner. In the process, psychological mark of 18000 would act as immediate resistance on the upside. Following are the points that validate our stance of pullback:

• a) the Nifty is approaching its price and time wise maturity as it entered ninth week of correction against nine week’s rally (16748- 18887) seen during September 2020 to January 2021 wherein it retraced 61.8%, highlighting robust price structure

• b) US Dollar index maintained lower high-low on the weekly chart and sustained below 102, indicating continuance of corrective bias. Indian equities have an inverse correlation with the US dollar index. Thus, weak dollar leads to higher foreign inflows

• c) globally, major equity markets have remained resilient and concluded the week on a positive note. We expect domestic markets to perform in tandem with global peers

• Structurally, the index has been undergoing slower pace of retracement, indicating robust price structure. We believe, ongoing corrective move would get anchored around strong support zone of 17500—17300, as it is confluence of: a) 80% retracement of OctoberDecember rally 16748-18887 b) Price parity of December decline (18887-17774) projected from last week’s high of 18201 is placed at 17140 c) Key long term moving average like 200 EMA & 52 weeks EMA is placed at 17550 and 17375, respectively

• In the coming session, index is likely to open on a subdued note amid flat global cues. We expect, volatility to remain high amid weekly expiry wherein index to prolong ongoing consolidation. Thus, intraday pullback towards 17662-17685 should be used to create intraday short positions for target of 17573

Nifty Daily Candlestick Chart 

Nifty: 17616

Technical Outlook

• The Nifty witnessed a roller coaster move as the Nifty oscillated by more than 1100 points during the day. After an initial up move, profit booking resurfaced from 20 day’s EMA, resulting in the index breaching recent lows marginally. Eventually, a fag end up move helped the index to recoup most intraday losses

• Going ahead, we expect the index to prolong the consolidation in the broader range of 18000-17300 wherein stock specific action would prevail amid progression of earning season. Amid elevated volatility, we expect the index to hold the key support zone of 17500-17300, as it is confluence of key long term moving averages like 200 days EMA and 52 weeks EMA. Thus, extended correction from here on should be capitalised on to accumulate quality stocks in a staggered manner. In the process, psychological mark of 18000 would act as immediate resistance on the upside. Following are the points that validate our stance of pullback:

• a) the Nifty is approaching its price and time wise maturity as it entered ninth week of correction against nine week’s rally (16748- 18887) seen during September 2020 to January 2021 wherein it retraced 61.8%, highlighting robust price structure

• b) US Dollar index maintained lower high-low on the weekly chart and sustained below 102, indicating continuance of corrective bias. Indian equities have an inverse correlation with the US dollar index. Thus, weak dollar leads to higher foreign inflows

• c) globally, major equity markets have remained resilient and concluded the week on a positive note. We expect domestic markets to perform in tandem with global peers

• Structurally, the index has been undergoing slower pace of retracement, indicating robust price structure. We believe, ongoing corrective move would get anchored around strong support zone of 17500—17300, as it is confluence of: a) 80% retracement of OctoberDecember rally 16748-18887 b) Price parity of December decline (18887-17774) projected from last week’s high of 18201 is placed at 17140 c) Key long term moving average like 200 EMA & 52 weeks EMA is placed at 17550 and 17375, respectively

• In the coming session, index is likely to open on a subdued note amid flat global cues. We expect, volatility to remain high amid weekly expiry wherein index to prolong ongoing consolidation. Thus, intraday pullback towards 17662-17685 should be used to create intraday short positions for target of 17573

Nifty Bank Index – Weekly Candlestick Chart???????

To Read Complete Report & Disclaimer Click Here

Please refer disclaimer at https://secure.icicidirect.com/Content/StaticData/Disclaimer.html
SEBI Registration number INZ000183631

Above views are of the author and not of the website kindly read disclaimer