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Technical Outlook

Equity benchmarks started the truncated week on a buoyant note tracking pullback in global markets amid cool off in crude oil. The Nifty extended winning streak by gaining 241 points or 1.45% to end the Monday’s session at 16871. In the coming session, index is likely to open on a flat note tracking mixed global cues. We expect index to trade with a positive bias while maintaining higher highlow formation. Thus, any pullback towards 16790-16825 should be used to create long position for target of 16913

The index has formed a higher high-low on the weekly chart after five weeks’ corrective phase, indicating resumption of uptrend. Going ahead, we expect Nifty to extend the ongoing up move and head towards 17200- 17300 in coming weeks as it is the 61.8% retracement of January-March decline (18350-15672). However, we expect move towards 17200 would be in a nonlinear and gradual manner. Therefore, couple of days breather ahead of Fed meet and ongoing geopolitical issues should be capitalized as incremental buying opportunity by accumulating quality stocks.

5Nifty Daily Chart

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