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Nifty: 17577

Technical Outlook

* The index witnessed a roller coaster move as the Nifty saw a 1300- points intraday movement during the session. The daily price action formed a bull candle with long lower shadow, highlighting elevated buying demand as despite elevated volatility the Nifty managed to hold Monday's low of 17245 (on a closing basis)

* The formation of higher high-low on the weekly chart signifies rejuvenation of upward momentum, which makes us confident that the Nifty would surpass the intermediate resistance of 17600 and gradually head towards 17900 in coming weeks as it is 80% retracement of last corrective phase (18350-16836). Nevertheless, after past four session’s 800-points rally, a couple of days breather at higher levels cannot be ruled out. However, a temporary breather from here on should not be construed as negative. Instead dips should be capitalised on to accumulate quality stocks

* Structurally, the index has been maintaining the rhythm of not witnessing negative close for more than two successive weeks since May 2020. At the current juncture, with two weeks of losses already behind us, the index is poised for a technical pullback in line with past 22 month rhythm. Therefore, any dips towards 17200 provide an incremental buying opportunity

* The broader market indices have been forming a higher base above 100 days EMA, highlighting robust price structure. We believe the extended consolidation from here on would make broader market heathy and pave the way for next leg of up move

* The formation of higher peak and trough weekly chart signifies elevated buying demand that makes us confident to revise support base upward at 17200 as it is confluence of :

* A) 50% retracement of current up move (16836-17622), placed at 17230

* B) Panic low of Union Budget session is placed at 17245

In the coming session, index is likely to open on a buoyant note amid firm global cues. We expect, the index to trade with a positive bias while maintaining higher high-low formation. Hence use intraday dip towards 17620-17652 for creating long position for target of 17737

 NSE Nifty Weekly Candlestick Chart

Nifty Bank: 38505

Technical Outlook​​​​​​​

* The daily price action formed a small bull candle with a long lower shadow signaling continuation of the up move and strong support at lower levels . Bank Nifty since the start of the CY22 has been relatively outperforming the Nifty which we expect to continue in the coming weeks

* Going ahead we expect the index to maintain positive bias and a decisive move above 38850 would drive the index higher towards 40300 in the coming weeks being the confluence of the 80 % retracement of the November - December 2021 decline (41829 -34019 ) and the 161 . 8 % external retracement of the last two weeks breather (38855 - 36375 ) .

* The index has completely retraced its last eight sessions decline (38855 -36375 ) in just five session signaling a positive bias • The index after the recent strong up move some profit booking can not be ruled out, however we believe any dips towards the 37000 -37500 levels provide an incremental buying opportunity to ride move towards 40300 levels

* The index has immediate support at the 37000 levels being the confluence of the 50 days EMA (currently at |37300 ) and the 80 % retracement of the current up move (36375 -38802 )

* Among the oscillators the daily stochastic remain in up trend thus supports the positive bias in the index in the coming sessions

* In the coming session, index is likely to open on a positive note amid strong global cues . We expect the index to trade with positive bias while maintaining higher high -low . Hence after a positive opening use intraday dips towards 38680 - 38750 for creating long position for the target of 39030 , maintain a stop loss at 38560

Nifty Bank Index – Daily Candlestick Chart

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