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Nifty: 17629

Technical Outlook

• On expected lines, the Nifty resolved higher and achieved our target of 17800. It started Thursday’s session with a positive gap (17550-17650) and continued to march upward throughout the session as intraday dips were bought into. The daily price action formed a significant bull candle carrying higher high-low, indicating acceleration of upward momentum

• The multi sector participation backed by improving market breadth signifies inherent strength that makes us reiterate our positive stance. Going ahead, sustainability above 17800 mark would open the door for next leg of up move towards 18200 in coming weeks as it is implied target of recent consolidation (17792-17326). We believe rejuvenated upward momentum in financial space would drive the index higher (as it carries 37% weightage in the Nifty). Key point to highlight is that, at life-time highs elevated volatility is a norm. Therefore, any temporary breather from here on should be capitalised on as incremental buying opportunity to ride next leg of up move

• In tandem with the benchmark, broader market indices extended gains and were on the cusp of challenging their lifetime highs. Therefore, traders should take advantage of dips to accumulate quality stock

• Structurally, the formation of higher peak and trough has once again confirmed a higher base formation at 17300-17200 range which we do not expect to breach as it is confluence of:

• a) 50% retracement of current up move (16565-17844) at 17204

• b) 20 days EMA at 17300, which has been held since July 2021

• c) past three weeks low is placed at 17254

In the coming session, the index is likely to open on a positive note tracking firm global cues. We expect it to trade with a positive bias while maintaining higher high-low formation. Hence, use intraday dip towards 17785-17815 for creating fresh long position for target of 17898

Nifty Bank: 37668

Technical Outlook

• The daily price action formed a strong bull candle with a higher high -low signaling resumption of up move after last three sessions of breather . In line with our view, buy on dips strategy has once again worked well as elevated buying demand emerged from crucial support area of 36500 .

• Going ahead, we expect the index to maintain positive bias and gradually head towards our target of 38600 in the coming weeks as it is the price parity with the previous two major up move of July (34115 -36317 ) and August (34817 - 37140 ) each measuring roughly 2250 points added to the previous week low of 36327 signals upside towards 38600 levels

• Among the oscillators the daily stochastic is seen rebounding from the neutral reading of 40 and is at the cusp of generating a buy signal thus validates positive bias

• The index has support base around | 36500 -36200 levels as it is the confluence of the following technical observations :

• 50 % retracement of the current up move (34817 -38112 ) placed around 36500 levels

• The upper band of the last three months range breakout area is placed around 36300 levels

• rising 20 days EMA also placed around 36690 levels

• The last two weeks lows are also placed around 36200 levels

• In the coming session, index is likely to open on a flat to positive note amid firm global cues . We expect the index to trade with positive bias while maintaining higher high -low, hence use intraday dips towards 37730 -37790 for creating long positi

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