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Nifty Technical Outlook:

Nifty on Friday’s session witnessed marginal profit booking after the strong rally of more than 1100 points in just five sessions. Optimism surrounding the US-Iran peace deal, a decline in crude oil prices below the $80 mark, a sharp recovery in the Indian Rupee, and supportive global cues collectively fuelled buying interest throughout the week.

Going ahead, bias remain positive and the index to extend the current up move gradually head towards the April high of 24,600 in the coming weeks.

Some consolidation after a 1100 points up move in just five sessions cannot be ruled out in the Nifty. However, we believe the overall structure is positive, and dips should be used to accumulate quality stocks in a staggered manner. Immediate support in Nifty is placed at 23,900-23,800 levels being the confluence of the 50 days EMA and the upper band of the bullish gap area of last Monday. While key short-term support is revised higher towards 23,500-23,600 levels being the recent breakout area and 61.8% retracement of the current up move 23,070-24,139.

From a structural perspective, the index has retraced more than 70% of its previous 7 weeks decline from 24,601-23,070 in just 2 weeks. A faster retracement during up move and a shallow retracement at corrective decline highlight positive bias.

Broader market is expected to extend its outperformance with Nifty Midcap 100 rallying to a fresh all-time high and head towards 63,500 levels, while Nifty Small cap 100 index heading towards CY25 high of 19,225 levels

Nifty IT Technical Outlook:

“Nifty IT index remains in a firm downtrend forming lower high and lower low in all time frame and is also trading below its short term and long-term moving averages.  Index has immediate key support at 26180 levels being the identical lows of CY22 and CY23.

Volatility is likely to be high in the coming sessions ahead of the quarterly result session of the IT stocks. Pricewise there is still no sign of reversal of the corrective trend, hence suggest to technically avoid at current levels. Let the price stabilize and only a formation of higher high and higher low in weekly chart and a move above the 50 days EMA currently placed around 29325 will be the initial sign of trend reversal.”

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