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Technical Outlook

The equity benchmark extended gains over third consecutive session ahead of Fed meet outcome. The Nifty concluded Wednesday’s session at 18756, up 40 points or 0.2%. In the coming session, the index is likely to open on a positive note tracking buoyant global cues. We expect, index to regain upward momentum while sustaining above past two session identical lows of 18560. Hence, use intraday dip in June future towards 18650- 18682 to create intraday long positions for target of 18767 with a stoploss of 18614.

We maintain our positive bias and expect Nifty to gradually head towards its lifetime highs of 18887 in June 2023. In the process, we expect broader market to outperform as Nifty midcap index endured its record setting spree. Thus, buy on dips strategy would continue to remain prudent strategy as Nifty has not corrected for more than 400 points while sustaining above its 20 days EMA since March. The current up move is backed by the significant improvement in the market breadth as currently 71% of the stocks of the Nifty 500 universe are trading above their 200 days EMA compared to May end reading of 62%.

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