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Nifty: 16595

Technical Outlook

* The Nifty started Thursday’s session with a positive gap (16345-16757) and approached the vicinity of intermediate resistance of 16800. Subsequently, minor profit booking from higher levels led the index to end at 16600. The daily price action formed a bear candle carrying higher high-low, indicating breather after past three session’s sharp up move of ~1100 points

* Going ahead, 16800 would be the key level to watch as a decisive close above 16800 would open the door for next leg of up move towards 17200 in coming weeks. Otherwise, couple of days breather cannot be ruled out after past three session’s ~1100 points sharp up move. Thus, any dip from here on should not be construed as negative. Instead it should be capitalised on as buying opportunity. The level of 16800 remains immediate resistance as it is confluence of:

* a) 50% retracement of February-March decline (17795-15671), at 16733

* b) as per change of polarity concept, earlier support of 16800 would now act as resistance

* c) 200 days EMA is placed at 16700

* On the downside, key support for the Nifty is placed at 15900 which we expect to hold amid ongoing global volatility as it is 80% retracement of ongoing up move (15671-16757), placed at 15888

* The broader market indices continued to inch upward and approached in the vicinity of 52 week EMA. We expect, the Nifty midcap and small cap indices to form a base around 52 weeks EMA in coming weeks

In the coming session, index is likely to open on a negative note tracking muted global cues. We believe, retracement of past three session sharp up move will make market healthy. Thus, after an initial blip we expect buying demand to emerge around intraday support of 16400. Hence, use dips towards 16430-16460 for creating long position for target of 16547

Nifty Bank: 34475

Technical Outlook

* The daily price action formed a bear candle as it opened with a gap up but profit booking at higher levels saw the index closed off the high . It also carries a bullish gap below its base (33815 -34218 ) sustaining above it will keep the immediate bias positive . Index on expected lines continued with its pullback for the third consecutive session and tested the immediate hurdle of 35100 on Thursday session . • Going ahead a follow through strength above Thursday high (35374 ) will open further upside towards the 200 days EMA placed around 36100 levels . Failure to do so will lead to a base formation in the range of 33000 -35000 in the coming sessions

* The index has immediate support around 32000 -32500 levels being the confluence of the following :

* (a) 80 % retracement of the previous major rally of April 2021 -October 2021 (30405 -41829 )

* (b) previous consolidation area of May 2021 is also placed around 32000 levels

* Among the oscillators the daily stochastic has rebounded from the oversold territory and has generated a buy signal moving above its three periods average thus supports the continuation of the current pullback in the index in the coming sessions

In the coming session, index is likely to open on a soft note amid weak global cues . We expect index to trade in range while sustaining above Thursday gap up area above 34000 levels . Hence use dips towards 34100 -34180 for creating long position for target of 34440 , maintain a stoploss at 33990

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