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Nifty: 17498

Technical Outlook

• The index witnessed a gap up opening (17325-17468) and settled on a positive note as intraday dips were bought into. As a result, daily price action formed a bull candle carrying higher high-low, indicating continuance of positive bias. The formation of lower shadow signifies elevated buying demand • On expected lines, index extended gains and resolved above past eight sessions shallow consolidation (resembling flag breakout). The sequence of higher high-low formation supported by multi sector participation makes us believe, index would endure its northbound journey and gradually head towards 18100 in April, as it is confluence of:

• a) 80% retracement of entire corrective phase since October 2021 (18604-15671)

• b) downward slanting trend line drawn adjoining OctoberJanuary highs (18604-18350) • We believe the move towards 18100 would be non linear. Thereby, temporary breather should not be construed as negative instead dips should be capitalised on as incremental buying opportunity.

• Structurally, despite elevated crude prices and hawkish Fed stance, index managed to form strong base around 17000 mark coincided with 50 days EMA, highlighting inherent strength. The breakout from consolidation confirms higher base that makes us confident to revise support base at 17000 as it is 50% retracement of recent up move (16470-17522), placed at 16695 coincided with 50 days EMA

• The broader market indices are regaining upward momentum after forming a higher base above 52 weeks EMA that has set the stage to witness catch up activity with its large cap peers in coming weeks. Thus, focus should be on accumulating quality midcap stocks In the coming session, index is likely to open on a positive note tracking mixed global cues. We expect index to endure positive momentum amid rise in volatility owing to monthly expiry. Hence, use intraday dips towards 17435-17470 for creating long position for target of 17558

NSE Nifty Daily Candlestick Chart

Nifty Bank: 36334

Technical Outlook

• The daily price action formed a bull candle with a higher high -low and a bullish gap below its base (35977 -36070 ) signaling continuation of the positive bias for the third consecutive session .

• On the smaller time frame the index has already taken eight sessions to retrace just 38 . 2 % of the preceding eight sessions up move (32156 -36612 ) . A slower retracement signals a higher base formation

• Going ahead, we expect the index to maintain positive bias and resolve above last two weeks highs placed around 36800 levels and head towards 38000 levels in the coming month being the 80 % retracement of the February -March decline (39424 -32155 )

• In the process any temporary breather should not be seen as negative, instead should be capitalized as buying opportunity in quality banking stocks • The immediate support base for the index is placed around 35000 levels being the confluence of :

• (a) 38 . 2 % retracement of the recent up move (32155 - 36612 ) placed at 34900 levels

• (b) The lows of the last two weeks are also placed around 35000 levels

• Among the oscillators the daily stochastic has recently generated a buy signal moving above its three periods average thus supports the positive bias in the index In the coming session, index is likely to open flat to positive note amid mixed global cues . We expect the index to Index to trade with positive while maintaining higher high -low . Hence use intraday dips towards 36100 -36180 for creating long position for target of 36440 , maintain a stop loss at 35990

Nifty Bank Index – Daily Candlestick Chart

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