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Technical Outlook

The equity benchmark endured its winning streak over third session in a row amid mixed global cues. The Nifty concluded Tuesday’s session at 18348, up 36 points or 0.2%. In the coming session, index is likely to open on a negative note tracking profit booking in global equity cues. We expect index to trade with corrective bias as the index is reacting lower from near the upper band of the recent consolidation range 18500-18000. Hence, after a negative opening use intraday pullback in May future towards 18348-18378 to create short positions for target of 18261 with a stoploss of 18417.

The lack of faster pace of retracement on either side signifies prolongation of ongoing consolidation in the broader range of 18500- 18000 wherein broader market to relatively outperform the benchmark. In the process, bouts of volatility owing to monthly expiry week coupled with global volatility cannot be ruled out. Therefore, dips should be capitalized to accumulate quality stocks in a staggered manner. We expect Nifty small cap space to witness catch up activity as the Nifty midcap index is just 1% away from its All Time High whereas Nifty small cap index is still 17% away

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