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Technical Outlook

The equity benchmark endured its winning streak over fourth consecutive session. The Nifty settled Tuesday’s session at 18633, up 35 points or 0.2%. In the coming session, the index is likely to open on a soft note amid subdued Asian cues. Index to consolidate its recent gains with positive bias. Stock specific action will continue to remain in focus. Hence, create long position in dips towards 18620- 18653 for the target of 18737, maintain stoploss at 18583.

The formation of higher peak and trough supported by improving market breadth signifies inherent strength that makes us confident to reiterate our positive bias and expect Nifty to gradually retest the life time highs of 18887 in coming weeks. In the process, we expect broader market to relatively outperform as it continued with its record setting spree over third consecutive session. Thus, any dip from hereon should be used to accumulate quality stocks to ride next leg of up move. Structurally, formation of higher high-low on the monthly chart signifies elevated buying demand that makes us confident to revise support base at 18200 as it is 80% retracement of current up move (18060-18662) coincided with 20 days EMA placed at 18275.

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