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Technical Outlook

The equity benchmarks extended its winning streak over fourth consecutive session. Nifty closed the session at 17557 levels up 159 points or 0.9%. In the coming session, index is likely to open on a subdued note tracking muted global cues. We expect, stock specific action to prevail amid positive bias. Meanwhile volatility would remain elevated ahead of RBI policy and weekly expiry. Hence, use intraday dip towards 17510-17542 to create intraday long positions for target of 17627 with a stoploss of 17473.

Going ahead, we reiterate our positive stance and expect Nifty to head towards 17600 as it is the upper band of the falling channel coincided with the implicated target of recent consolidation breakout (17200-16800). We are witnessing significant improvement in our broader indicators which augurs well for acceleration of upward momentum. Thus, any dips from hereon should be capitalized to accumulate quality stocks. The index has retraced past 12 sessions decline in just 4 sessions. Faster pace of retracement signifies structural improvement. Meanwhile, Rate of Change indicator has logged a resolute breakout from 5 month high, indicating revival in upward momentum.

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