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Technical Outlook

The equity benchmark started the week on a positive note tracking firm global cues. The Nifty settled Monday’s session at 16258 up 20 points. In the coming session, the index is likely to open on a flat note tracking muted global cues. We expect index to stage a pullback from Wednesday’s gap area (16130- 16176). Hence use intraday dips towards 16205-16230 to create long for target of 16319

Going ahead, we expect index to gradually resolve above 16300 mark and accelerate upward momentum towards our revised target of 16600 in coming month. Key point to highlight is that, the Bank Nifty is undergoing a shallow price retracement after last week’s sharp up move, highlighting robust price structure. We believe, a revived traction in banking stocks (which carries 37% weightage in Nifty) would drive Nifty towards 16600 as it is 138.2% extension of mid-June rally (15450-15915) projected from June high of 15915 is placed at 16575.

Nifty Daily Chart

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