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Technical Outlook

Equity benchmarks extended pullback over second consecutive week as the Nifty gained 190 points or 1% to settle the week at 18103. In the coming session, the index is likely to open on a positive note amid positive global cues. We expect, index to trade with a positive bias while maintaining higher high-low. Hence, use dip towards 18130-18162 for creating long position for target of 18248

The formation of higher peak and trough on the monthly chart signifies broader positive structure is intact that makes us believe, index would eventually resolve higher and retest the all-time high of 18600 by December 2021. Key point to highlight over past 18 months is that, price-wise Nifty has maintained the rhythm of not correcting for more than 7-9% while sustaining above 50 days EMA and time-wise intermediate corrections have got arrested within four weeks. As index has already corrected 5.5% over past three weeks, we expect index to hold 17500 and eventually challenge the life highs.

Nifty Daily Chart

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