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Nifty : 18857

Technical Outlook

• The index oscillated in 80 points range post positive opening. The daily price action formed a doji candle carrying lower high-low, indicating continuation of upward momentum amid elevated volatility.

• Going ahead, we reiterate our positive stance and expect Nifty to challenge lifetime highs of 18887, paving the way to gradually head towards 19300 in the month of July. However, the move towards 19300 would be in a non linear manner as bouts of volatility owing to global development can not be ruled out. Thus, any dip from hereon should be capitalised to build a portfolio by accumulating quality stocks from medium term perspective as we do not expect index to breach the key support of 18400.

• Key point to highlight is that, over past 12 weeks Nifty midcap and small cap indices have rallied 22%, 25%, respectively leading to overbought condition. However, there is no signs of weakness yet as the broader structure remains robust. Thus, any profit booking from higher levels should not be construed as negative instead it should be used to accumulate quality stocks that would pave the way for subsequent 25% rally in Midcap index over next 12 months

• Structurally, formation of higher high-low on the weekly and monthly chart signifies elevated buying demand that makes us confident to retain support base at 18400 as it is confluence of: • a) since March Nifty has not corrected more than 400 points. In current scenario 400 points correction will mature 18465

• b) 50% retracement of current up move (18060-18881)

• c) current month’s low of 18464 In the coming session, the index is likely to open on a subdued note tracking muted global cues. We expect, index to consolidate near Lifetime highs amid positive bias. Hence, use intraday dip in June future towards 18825-18856 to create intraday long positions for target of 18942 with a stoploss of 18788.

Nifty Bank: 43859

Technical Outlook

• The Daily price action formed a high wave candle with higher high -low indicating follow through to Tuesday’s late recovery from key support around 43300 which is a value of rising 50 -day ema and lower band of declining channel that encompass price action over past three weeks . Follow through strength above higher band of channel at 44200 would indicate conclusion of corrective phase else extended consolidation in th e 43300 -44200 to continue

• Bank Nifty has been forming a lower high -low on weekly charts for past two weeks indicating corrective phase after sharp 15 % rally from March lows (38613 )

• From structural perspective, such corrective phase would make medium term trend healthier and would provide fresh investment opportunity with favourable risk -reward

• The index has immediate support at 43400 levels being the confluence of the last two weeks identical lows and the rising 50 -day ema

• In the coming session, index is likely to open on a flat note trading muted global cues . The index has a key hurdle at 44000 -44100 zone . Thus prolongation of consolidation likely . Hence, use dips towards 43780 - 43842 for creating long positions for the target of 44092 with stoploss at 43663 .

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