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Technical Outlook

Equity benchmarks extended breather over third consecutive session and concluded Tuesday’s session on a flat note at 14910, down 19 points. In the coming session, follow through strength above past two session’s identical high (spot-15052) would confirm conclusion of corrective bias and resume primary up trend. Else, extended consolidation amid stock specific action. Hence, use intraday dip towards 14905-14932 to create long position for target of 15019.

Going ahead, we reiterate our constructive stance and expect Nifty to gradually retest upper band of consolidation placed at 15300 in coming weeks. In the process, we expect index to hold Monday’s panic low placed around 14700. The rotational sectoral leadership in IT and FMCG signifies inherent strength. Therefore, any dip from here on should be capitalized as incremental buying opportunity in quality large caps and midcaps stock.

The broader market indices are undergoing slower pace of retracement signifying robust price structure that augurs well for subsequent up move. Thus, we expect, broader markets to accelerate relative outperformance in coming weeks

Nifty Weekly Chart

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