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Nifty : 18716

Technical Outlook

• The index endured its northbound journey as intraday dips were bought into. The daily price action formed a bullish belt hold line candle, carrying higher high-low, indicating resumption of upward momentum after temporary breather

• The formation of higher peak and trough supported by improving market breadth signifies inherent strength that makes us confident to reiterate our positive stance of Nifty gradually heading towards its lifetime highs of 18887 in June 2023. However, the move towards Life time high will be in a non linear manner as bouts of volatility ahead of upcoming Fed meet can not be ruled out. Thus, buy on dips strategy would remain in focus which has been fared well since March as Nifty has not corrected for more than 400 points while sustaining above its 20 days EMA, placed at 18490.

• Structurally, we expect the broader market to continue with its relative outperformance as the midcap index clocked a fresh all time high while small cap index is catching up with the benchmark as it is still 12% away from life highs.

• Structurally, formation of higher high-low on the weekly and monthly chart signifies elevated buying demand that makes us confident to revise support base at 18400 as it is 50% retracement of current up move (18060-18778) coincided with 20 days EMA placed at 18490.

In the coming session, the index is likely to open on a positive note tracking firm global cues. We expect, index to extend upward momentum while sustaining well above its 20 days EMA. Hence, use intraday dip in June future towards 18755- 18785 to create intraday long positions for target of 18872 with a stoploss of 18718.

Nifty Bank: 44080

Technical Outlook

• The Daily price action formed Engulfing line bullish candle indicating supportive efforts around 20 day ema (43900 ) while index continues to consolidate in the range (44500 - 43706 ) indicating slowdown in momentum after 11 week rally measuring 15 % led weekly momentum oscillators in overbought trajectory (weekly stochastics around 90

• Going ahead, we expect index to prolong consolidation in the band of 43400 -44500 for few sessions while overall bias remains positive as long as index continues to trade above 43400 mark .

• Structurally, Bank Nifty has witnessed a faster retracement of the 14 weeks decline (44151 -38613 ) during Dec22 - Mar23 in just seven weeks . Faster retracement in just half the time interval indicates structural improvement from medium term perspective . However after such sharp rally consolidation near life highs would make larger trend healthier

• The index has immediate support at 43400 levels being the confluence of the last two weeks identical lows and the 50 % retracement of the recent up move (42582 -44151 )

• Among the oscillators, the weekly stochastics has approached overbought trajectory flagging a possibility of a consolidation • For the coming session, index is likely to open on a positive note tracking firm global cues . Hence, use intraday dip in June future towards 44170 -44230 to create intraday long positions for target of 44480 with a stoploss of 44048

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