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Technical Outlook

The equity benchmark endured its northbound journey despite muted global cues. The Nifty gained 1.4% to settle the week at 18315. In the coming session, the index is likely to open on a soft note amid mixed global cues. Index post subdued opening is expected to consolidate while holding above 18200 levels. Stock specific action will continue to remain in focus. Hence, create long position in the range of 18235-18268 for the target of 18347, maintain stoploss at 18197.

Going ahead, we expect Nifty to undergo healthy consolidation in the broader range of 18500-18000 with stock specific action as most large cap earnings are behind us. In the process, we expect broader market to relatively outperform as Nifty midcap index is just shying away 2% from its All Time High. We expect, midcap index to eventually challenge life highs over next few weeks. Thus, focus should be on accumulating quality stocks on dips amid progression of earning season. The current rally is backed by weekon-week strong market breadth as the percentage of stocks above 200 days EMA for the Nifty 500 universe have jumped to 59% compared to last week’s reading of 52% which depicts broader market participation

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