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Technical Outlook

Equity benchmarks concluded Monday’s session on a flat to positive note amid elevated global volatility owing to concerns over new Corona variant. Nifty ended at 17054, up 28 points or 0.2%. In the coming session, the index is likely to open on a flat note tracking mixed tracking mixed Asian cues. We expect volatility to remain high with key support around 16900 amid oversold placement of weekly stochastic oscillator (placed at 12). Hence, use dips towards 16920-16952 for creating long position for target of 17033.

Going ahead, we believe ongoing corrective phase to find its feet around 16900-16700 zone and consequently undergo a base formation. However, to stage a meaningful pullback index need to decisively close above previous sessions high (17160). Else continuance of lackluster move amid stock specific action. Thus, dips should be capitalized to accumulate quality stocks as we do not expect index to breach the key support threshold of 16900-16700. Meanwhile, 17600 would continue to act as immediate hurdle being 50 days EMA.

Nifty Weekly Chart

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