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Technical Outlook

Equity benchmarks snapped six sessions losing streak and concluded Monday’s session on a positive note. The Nifty gained 57 points or 0.4% to settle the session at 15350. In the coming session, index is likely to open on a flat note tracking positive Asian cues. Holding, Monday’s low 15202 would keep pullback option open. Hence, use intraday dip towards 15280-15312 for creating long position for the target of 15397

The formation of lower high-low on the weekly chart signifies extended corrective phase. However, bearish extreme readings on momentum and sentiment indicator suggest that going aggressive short at lower levels should be avoided as technical pullbacks could not be ruled out amid oversold reading of daily stochastic oscillator (placed at 13). Going ahead, for a meaningful pullback to materialise, index needs to form higher highlow on weekly timeframe along with improvement in market breadth. In the process, 15800 will act as key resistance on up side.

Nifty Daily Chart

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