The index is undergoing a slower pace of retracement wherein over past six sessions it retraced 61.8% - ICICI Direct
Technical Outlook
Equity benchmarks took a breather amid muted global cues as recession fear resurfaced. The Nifty settled the week at 18496, down 1%. In the coming session, index is likely open on a subdued note tracking muted global cues. Post initial dip we expect index to hold key support of 18450 and stage a bounce. Thus, intraday dip towards 18480- 18512 should be used to create intraday long positions for target of 18597
The index is undergoing a slower pace of retracement wherein over past six sessions it retraced 61.8% of preceding eight session’s up move 18133-18887, indicating inherent strength. We believe, prolonged consolidation 18900-18300 would help index to cool off the overbought conditions and form a higher base that would pave the way to head towards 19400 in January 2023. Post Fed event, we expect directional move to accelerate towards 19400 as the broader bullish structure remains intact. Nifty midcap index is sustaining above the triangle breakout area, indicating rejuvenation of upward momentum. We expect it to resolve higher and challenge alltime high with small cap accelerating catch up activity in coming weeks
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