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Technical Outlook

Equity benchmarks extended losses over second consecutive session as Nifty slipped 43 points or 0.2% to settle Tuesday’s session at 17325. In the coming session, the index is likely to open on a flat note tracking muted global cues. We expect, index to extend the ongoing consolidation amid stock specific action. Hence use dip towards 17248-17273 for creating long position for target of 17365. We believe,

the index is undergoing healthy retracement of past four sessions up move (16892-17640) which will help index to form a higher base around 16900-17000 ahead of US Fed meeting that would set stage to ultimately resolve above higher band of consolidation at 17500. Therefore, extended breather form hereon should not be construed as negative instead capitalised as incremental buying opportunity to accumulate quality stocks. We expect, broader market indices to extend their relative outperformance as they have resolved out of strong base formation near 50-dema with improvement in market breadth, highlighting rejuvenation of upward momentum.

Nifty Weekly Chart

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