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Technical Outlook

Equity benchmarks concluded monthly expiry session on a negative note as Nifty slipped below psychological mark of 18000. The index settled Thursday’s session at 17857, down 354 points or 1.9%. In the coming session, index is likely to open on a flat note amid muted Asian cues. We believe, initial intraday pullback would be short lived after Thursday’s sharp decline. Thus, pullback towards 17978-17995 for creating short position for target of 17883The index has breached previous week’s low after 12 weeks’ rally and closed below 20 days EMA, indicating pause in upward momentum. Going ahead, we expect Nifty to consolidate in a broader range of 17700-18400 with stock specific action amid progression of Q2FY22 result season.

The secondary correction is the part of a secular bull trend which makes market healthy. In current scenario, we expect supportive efforts to emerge around key support threshold of 17700. The ongoing corrective phase should not be construed as negative, instead dips should be capitalized to build quality portfolio over medium term.

Nifty Daily Chart

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