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Nifty

• The index witnessed a choppy trading session wherein it oscillated in a 100-point range. As a result, the daily price action formed a small bull candle carrying a higher high-low with higher shadow, indicating a breather after past two session’s up move. The daily NSE cash turnover remained low with | 43000 crore compared to 20 days average turnover of | 56000 crore, indicating lack of participation

• Going ahead, we expect the ongoing consolidation of the index to get prolonged in the 18300-17800 range amid stock specific action. We believe the recent breather helped the index to cool off weekly stochastic oscillator (currently placed at 17) and form a higher base that has paved the way for the next leg of the up move. Since June 2022 lows, price wise the index has not corrected for more than 8% and time wise decline has not extended for more than three consecutive weeks. In the current scenario, we expect the index to maintain the same rhythm as it has already corrected 6% over the past three weeks. Thus, bouts of volatility owing to global development should be capitalised on as incremental buying opportunity. Meanwhile, 18300 would act as immediate resistance for the Nifty as it is confluence of 50% retracement of past three weeks’ decline (18887-17816) coinciding with 20 days EMA placed at 18280

• The broader market indices have shown decent recovery of last week’s decline, indicating inherent strength. Going ahead, we expect the index to undergo healthy consolidation and form a higher base to ride next leg of up move

• We believe, strong support fro the Nifty is placed at 17500 where extended correction would get anchored, as key support of 17500 is confluence of: a) 61.8% retracement of October-December rally 16748-18887 is placed at 17565 b) 200 days EMA is placed at 17442 c) Price parity of September 2022 decline (18096 – 16747) projected from all time high of 18887 is placed at 17480

• In the coming session, index is likely open on a flat note tracking muted global cues. We expect, consolidation with stock specific action would prevail amid elevated global volatility. Thus, intraday dip towards 17995-18027 should be used to create intraday long positions for target of 18113

Nifty Bank

• The daily price action formed a small bull candle with a long upper shadow which maintained higher high -low signalling consolidation with positive bias for the second consecutive session after Monday’s strong up move .

• Going ahead a follow through strength and a close above 43000 levels will lead to extension of the current up move towards 43600 levels in the coming sessions . Failure to do so will lead to continuation of the current consolidation in the range of 41600 -43000 in the coming sessions

• On the higher side 43600 would act as an immediate hurdle in coming sessions being the confluence of the last week high and the 80 % retracement of the last two weeks breather (44151 -41570 )

• The weekly stochastic seen consolidating around the neutral reading of 38 signalling consolidation with positive bias likely in coming sessions

• The Bank Nifty has major support at 40700 mark being the confluence of the (a) 50 % retracement of the previous rally (37387 -44151 ) placed at 40760 (b) the rising 20 weeks EMA is also currently placed at 40850 levels which has acted as strong support in the up move since June 2022 .

In the coming session index is likely to open on a negative note tracking weak global cues . In today’s session retracement of last three sessions up move should be used as a buying opportunity . Hence use intraday dips towards 42440 -42520 for creating long position for a target of 42780 , with a stop loss of 42330 .

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