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Technical Outlook

The equity benchmark edged lower amid minor profit booking in HDFC twins. The Nifty settled the session at 18286 down 112 points or 0.6%. In the coming session, index is likely to open on a muted note tracking subdued global cues. After initial blip, we expect index to find support from 18250 mark and stage a rebound. Hence, use intraday dip in May future towards 18225-18258 to create intraday long positions for target of 18343 with a stoploss of 18187.

We maintain our positive stance and expect Nifty to gradually head towards 18500 in coming sessions. Key point to highlight is that, the index has already rallied ~10% over past eight weeks which hauled market in overbought conditions. Thus, couple of days breather cannot be ruled out which will make market healthy and pave the way for next leg of up move. Thus, focus should be on accumulating quality stocks on dips amid progression of earning season. The broader market indices continued their northbound journey while maintaining higher peak and trough, indicating robust price structure. Thus, Mid-cap stocks should be in focus amid progression of earning season.

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