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Nifty :18756

Technical Outlook

• The index recouped initial blip and settled the session above 18750 mark. The daily price action formed a high wave candle, carrying higher high-low, indicating continuation of upward momentum amid elevated volatility

• We maintain our positive bias and expect Nifty to gradually head towards its lifetime highs of 18887 in June 2023. In the process, we expect broader market to outperform as Nifty midcap index endured its record setting spree. Thus, buy on dips strategy would continue to remain prudent strategy as Nifty has not corrected for more than 400 points while sustaining above its 20 days EMA since March.

• The current up move is backed by the significant improvement in the market breadth as currently 71% of the stocks of the Nifty 500 universe are trading above their 200 days EMA compared to May end reading of 62%. The gradual improvement in the market breadth signifies inherent strength that bodes well for continuation of current up move

• Structurally, formation of higher high-low on the weekly and monthly chart signifies elevated buying demand that makes us confident to revise support base at 18400 as it is 50% retracement of current up move (18060-18778) coincided with 20 days EMA placed at 18500.

• In the coming session, the index is likely to open on a flat note tracking mixed global cues owing to fed meet outcome. We expect, index to trade with a positive bias while maintaining higher high-low. Hence, intraday dip in June future towards 18735-18765 to create intraday long positions for target of 18852 with a stoploss of 18698.

Nifty Bank:43988

Technical Outlook

• The index pared initial gains and subsequently oscillated in 100 points range throughout the session . As a result, daily price action formed bear candle carrying higher high -low, indicating extended breather above 20 day ema (43900 )

• Going ahead, we expect index to prolong consolidation in the band of 43400 -44500 for few sessions while overall bias remains positive as long as index continues to trade above 43400 mark .

• Key point to highlight is that, the past three weeks consolidation (44500 -43706 ) has been taking a shape of a contracting triangle pattern indicating slowdown in momentum after 11 week rally measuring 15 % leading momentum oscillators in overbought trajectory

• Structurally, Bank Nifty has witnessed a faster retracement of the 14 weeks decline (44151 -38613 ) during Dec22 -Mar23 in just seven weeks . Faster retracement in just half the time interval indicates structural improvement from medium term perspective . However after such sharp rally consolidation near life highs would make larger trend healthier

• The index has immediate support at 43400 levels being the confluence of the last two weeks identical lows and the 50 % retracement of the recent up move (42582 - 44151 )

• For the coming session, index is likely to open on a flat note tracking mixed global cues . Hence, use intraday dip in June future towards 44020 -44080 to create intraday long positions for target of 44330 with a stoploss of 43898

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