IGI Logo

Technical Outlook

The equity started the truncated week on a buoyant note backed by firm global cues. The Nifty gained 0.5% for the week to settle Tuesday’s session at 18148. In the coming session, index is likely to open on a muted note tracking subdued global cues. After initial blip, we expect index to find support from 18100 mark and stage a rebound. Hence, use intraday dip in May future towards 18090- 18123 to create intraday long positions for target of 18207 with a stoploss of 18053.

The sequence of higher high-low formation signifies elevated buying demand in turn suggesting acceleration of upward momentum. The breakout from an inverted head and shoulder backed by improving market breadth makes us believe, index will continue to march upward and gradually head towards milestone of 18300 in coming week. However, past five week’s up move hauled daily and weekly stochastic in overbought conditions (placed at 94 and 90, respectively), indicating possibility of couple of days breather amid Fed meet outcome can not be ruled out which should be capitalised to accumulate quality stocks amid progression of earing season.

To Read Complete Report & Disclaimer Click Here

Please refer disclaimer at https://secure.icicidirect.com/Content/StaticData/Disclaimer.html
SEBI Registration number INZ000183631

Above views are of the author and not of the website kindly read disclaimer