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Nifty (17136

Technical Outlook

• The Nifty opened the session on firm note following global cues and gained further strength as supportive efforts emerged around 200 day EMA (16840) after 9 session corrective rendered daily momentum oscillator to extreme oversold trajectory (reading of 8 on Tuesday) The price action thus formed an inside bar within Tuesday’s large bear candle indicating pause in downward pressure

• Index is currently seen rebounding from the support area of 16800 being the confluence of 200-dema and 50% retracement of the entire March 2022 up move. However, only a closing above 17500 would signal acceleration of momentum, else base formation in the range of 16800-17500 is expected in the coming sessions

• The index has strong hurdle around 17500 levels as it is a) The Monday’s falling gap area and b) 50% retracement of past nine session decline (18114-16824)

• Structurally, the current decline is shaping out as a retracement of strong 15% rally from March lows of 15671 which will help index to work out of overbought conditions and also digest Q4FY22 earnings in the process. We expect Nifty to form a higher bottom as compared to March (15871) wherein strong support is placed in the range of 16200-16300 which we do not expect to be breached as it is confluence of:

• A) 80% retracement of entire up move off March low (15671- 18114), placed at 16160

• B) Bullish gap area of 10th March 2022 at 16350 levels

• The broader market indices also are undergoing correction after strong gains in March 2022 and expected to undergo further correction retracing rally by 50%. Hence another 3-5% correction at index level cannot be ruled out which will make larger structure more healthy In the coming session, index is likely to open on a positive note tracking firm global cues. We expect the index to continue with its previous session pullback, hence after a positive opening use intraday dips towards 17140-17172 for creating long position for the target of 17259

NSE Nifty Daily Candlestick Chart

Nifty Bank: 36314​​​​​​​

Technical Outlook​​​​​​​

• The daily price action formed a high wave candle which remained contained inside previous session price range signaling consolidation after the last three sessions decline .

• Going ahead, index holding above Tuesday panic low (35926) will lead to consolidation in the broad range of 36000 -37300 . However, failure to do so will lead to an extension of decline towards the recent major lows of 35000 levels in the coming weeks

• On the higher side 37300 is likely to act as immediate hurdle being the confluence of the Tuesday high (37122 ) and the Monday’s gap down area placed around 37300 levels

• In the smaller time frame the index has already taken 10 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

• Past 10 session’s corrective phase hauled daily stochastic in oversold territory (19 ) lowest levels since March 2022 , indicating impending pullback in coming sessions . In the coming session, index is likely to open on a positive note tracking firm global cues . Index is likely to consolidate with positive bias . Hence after a positive opening use intraday dips towards 36380 -36450 for creating long position for the target of 36690 , maintain a stoploss at 36290

Nifty Bank Index – Daily Candlestick Chart

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