IGI Logo

Technical Outlook

Equity benchmarks ended lower after past two sessions pullback and settle Tuesday’s session at 17999, down 110 points or 0.6%. In the coming session, the index is likely to open on a subdued note tracking muted global cues. We expect, index to prolong the consolidation amid stock specific action. Hence, use dip towards 17890-17922 for creating long position for target of 18007. Going ahead, we expect index to prolong the ongoing consolidation in the broader range of 18200-17700 amid stock specific action as sectoral churn continues.

The lack of faster retracement on either side indicates extended consolidation which would offer incremental buying opportunity as index approaches price/time wise maturity of correction. 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. We expect index to hold 17500 and eventually challenge upper band of consolidation at 18200. Hence, dips should be capitalised on to accumulate quality stocks.

Nifty Daily Chart

To Read Complete Report & Disclaimer Click Here

https://secure.icicidirect.com/Content/StaticData/Disclaimer.html

Views express by all participants are for information & academic purpose only. Kindly read disclaimer before referring below views. Click Here For Disclaimer