IGI Logo

Nifty : 18601

Technical Outlook

• The index started the session on a positive note and oscillated in 70 points range through out the session. As a result, daily price action formed an inside bar confined within Friday’s bear candle, indicating extended breather amid stock specific action.

• Going ahead, we reiterate our stance of Nifty gradually heading towards its lifetime highs in June 2023. In the process, buy on dips strategy would remain in focus which has been fared well since March as Nifty has not corrected for more than 400 points while sustaining above its 20 days EMA, placed at 18450. However, the move towards Life time high will be in a non linear manner as bouts of volatility ahead of upcoming Fed meet can not be ruled out which would consequently result into temporary breather amid overbought conditions. We believe, such a breather would help index to form a higher base and pave the way for next leg of up move.

• Structurally, we expect the broader market to relatively outperform as the midcap index recorded breakout from 18 months consolidation and hovering at All time highs while small cap index is still 13% away from life highs and expected to catchup gradually.

• 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 18450.

• In the coming session, the index is likely to open on a positive note tracking buoyant global cues. We expect, index to regain upward momentum while sustaining above past two session identical lows of 18560. Hence, use intraday dip in June future towards 18650-18682 to create intraday long positions for target of 18767 with a stoploss of 18614.

Nifty Bank: 43944

Technical Outlook

• The Daily price action formed small bear candle with shadows on either side indicating lacklustre trade, while continuing to trade within prior week’s trading range (44500-43706) indicating slowdown in momentum after 11 week rally measuring 15 % led weekly momentum oscillators in overbought trajectory (weekly stochastics around 90

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

• 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 )

• Among the oscillators, the weekly stochastics has approached overbought trajectory flagging a possibility of a consolidation

• In the coming session, the index is likely to open on a positive note tracking buoyant global cues . We expect, index to hold 20 days EMA placed at 43870 and regain upward momentum . Hence, use intraday dip in June future towards 44058 -44120 to create intraday long positions for target of 44370 with a stoploss of 43945

To Read Complete Report & Disclaimer Click Here

Please refer disclaimer at https://secure.icicidirect.com/Content/StaticData/Disclaimer.html
SEBI Registration number INZ000183631

Above views are of the author and not of the website kindly read disclaimer