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Nifty: 17278

Technical Outlook

• The index witnessed a gap down opening ( (17149-17001) tracking weak Asian cues. However, supportive efforts emerged from key support threshold of 16800 that helped index to recoup entire losses and settle the session near days high. As a result, daily price action formed a bull candle with lower shadow, highlighting buying demand at elevated support base amid oversold placement of daily stochastic oscillator (currently placed at 20).

• Going ahead, holding above 16800 amid ongoing global volatility and follow through strength by forming higher highlow (on a closing basis) would indicate pause in downward momentum that would open the door for technical pullback in coming weeks. However, in case of breach of key support threshold of 16800, ongoing corrective phase would extend towards December 2021 low of 16400. Thus, key thing to watch amid ongoing global volatility would be sustenance above 16800 on a closing basis as it is confluence of:

• a) 50% retracement of recent corrective phase (18350-16998)

• b) current week’s high is placed at 17599

• The broader market indices staged a pullback from lower band of past three months consolidation coincided with 100 days EMA. We believe, the extended consolidation from hereon would help broader market indices to form a strong base formation that would eventually pave the way for next leg of up move. Therefore focus should be on accumulating quality stocks

• Structurally, we expect index to hold Tuesday’s panic low and undergo higher base formation. The secondary correction is part of the secular bull market that set the stage for acceleration in momentum of prevailing up trend. In current scenario, we believe strong support for the Nifty is placed at 16800 as it is 80% retracement of December-January rally (16410-18350), placed at 16798

* Due to expected high volatility, in this report we are not recommending pre market index strategy. Subsequently, the strategy will be flashed on ICLICK-2-GAIN at an opportune time

Nifty Bank: 37706

Technical Outlook​​​​​​​

• The daily price action formed a bullish engulfing like candle, as it opened lower but recovered as the session progressed to engulfed its entire previous session decline to close near day’s high . The index need to start forming higher high -low on a sustained basis to signal a reversal of the recent corrective trend .

• Index on today’s session opening gap down on account of weak global cues . Holding above last two sessions lows around 36500 will lead to a pullback effort in the coming sessions . On the higher side a follow through strength above last three sessions almost identical high (37788 ) will open upside towards 38400 levels in the coming sessions being the 80 % retracement of the recent breather (38855 -36375 )

• The index has support at the 36000 -35800 levels being the 61 . 8 % retracement of the previous rally (34018 - 38855 ) and the value of the rising 200 days EMA placed at 35800 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

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