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Technical Outlook

The equity benchmark regained upward momentum after Wednesday’s decline. The Nifty gained 36 points or 0.2% to settle the session at 18321. In the coming session, index is likely to open on a flat note tracking mixed global cues. The elevated buying demand from 20 days EMA signifies inherent strength. Hence, use intraday dip in May future towards 18350-18383 to create intraday long positions for target of 18467 with a stoploss of 18313.

We expect prolongation of consolidation in the broader range of 18500-18000. Key point o highlight is that, past eight sessions price action has been taking a shape of a contracting triangle, indicating narrow trading range amid stock specific action while sustaining above 20 days EMA, highlighting healthy consolidation that augurs well for next leg of up move. Therefore, any dip from hereon should be capitalized to accumulate quality stocks in a staggered manner. The broader market indices continued with their relative outperformance while maintaining higher peak and trough, indicating elevated buying demand. Thus, broader market should be in focus as we approach the fag end of the earning season

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