IGI Logo

Technical Outlook

The equity benchmark index staged a roaring comeback as bulls asserted control. The Nifty settled the week at 16230 with highest weekly gains 3% since mid-May 2020. In the coming session, the index is likely to open on a flat note tracking firm global cues. We expect index to trade with positive bias while sustaining above Wednesday’s gap area (16130-16176). Hence use intraday dips towards 16190-16220 to create long for target of 16305. Going ahead, we expect index to extend its northbound journey and gradually head towards our revised target of 16600 in coming month as it is 138.2% extension of mid-June rally (15450-15915) projected from June high of 15915 is placed at 16575.

Our constructive stance is based on: A) The Nifty and Bank Nifty indices have witnessed a faster pace of retracement, highlighting inherent strength that bodes well for extension of ongoing up trend. B) Indian benchmarks are expected to accelerate outperformance against Developed and Emerging market peers as signaled by fresh breakout on relative ratio chart.

Nifty Daily Chart

To Read Complete Report & Disclaimer Click Here

https://secure.icicidirect.com/Content/StaticData/Disclaimer.html

Views express by all participants are for information & academic purpose only. Kindly read disclaimer before referring below views. Click Here For Disclaimer