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Technical Outlook

The equity benchmark concluded volatile sessions on a positive note amid mixed global cues. The Nifty ended Tuesday’s session at 16280 up 22 points. In the coming session, the index is likely to open on a positive note tracking firm global cues. We expect index to trade with a positive bias while maintaining higher high-low. Hence use intraday dips towards 16210-16240 to create long for target of 16327

We believe, the index is undergoing healthy consolidation after last week’s sharp up move. Over past three out of four sessions, the index has formed a small bodied candles with long shadows on either side, highlighting rise in volatility. Yet, index managed to sustain above Wednesday’s gap area (16130-16176), highlighting inherent strength. The rejuvenated traction in key index heavyweights like banking and IT sector (which cumulatively carries 54% weightage in Nifty) makes us believe, index would eventually resolve above 16300 mark and accelerate upward momentum towards our revised target of 16600 in coming month

Nifty Daily Chart

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