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Technical Outlook

Technical Outlook Equity benchmarks extended their decline over a third consecutive week. The Nifty ended the week at 17807, down 2.5%. The Nifty ended the week at 18269, down 1.2%. In the coming session, index is likely open on a flat note. The formation of lower high-low signifies continuation of corrective bias. Thus, intraday pullback towards 17935-17962 should be used to create intraday short positions for target of 17848

The acceleration of downward momentum on the breach of 50 days EMA signifies prolongation of corrective bias which may lead towards key support of 17500. Key point to highlight is that, since June 2022 lows, price wise index has not corrected for more than 8% and time wise decline has not extended for more than three consecutive weeks. In current scenario, we expect index to maintain the same rhythm as it has already corrected 6% over past three weeks. Thus, we believe elevated volatility owing to monthly expiry would present buying opportunity in the coming week. However, formation of a higher high-low on the daily chart would confirm pause in the ongoing corrective move. Meanwhile, on the upside 18300 would act as key resistance

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