IGI Logo

Nifty : 21743

Technical Outlook

Equity benchmarks edged higher tracking firm Asian cues. The Nifty concluded Tuesday’s session at 21743, up 127 points or 0.6%. The market breadth turned flat with A/D ratio of 1:1 as broader market relatively underperformed. Sectorally, barring metal all other indices ended in green led by financials, pharma Technical Outlook

• The index started the session on a flat note. However, supportive efforts from Monday’s low helped index to recoup intraday losses and settled the session near days high. consequently, daily price action formed a bull candle with shadows on either side, indicating extended breather amid stock specific action

• We believe, ongoing consolidation in the broader range of 22000-21100 would make market healthy and provide fresh entry opportunity in quality stocks as we approach the fag end of the earning season. Thus, buying on dips would be the prudent strategy to adopt as strong support is placed at 21100. Our positive bias is further validated by following observations.

• A) Most global indices inched up marginally to record new 52-week highs ahead of next week’s US inflation numbers

• B) steady oil prices and bond yields are likely to act as tailwind

• The formation of lower high-low on the weekly chart indicates short term corrective bias that makes us revise support base at 21100 as it is confluence of: A. 61.8% retracement of mid Dec-Jan rally (20508-22124) B. January 2024 low is placed at 21137

Nifty Bank: 45502

Technical Outlook

The Nifty Bank concluded volatile session on a buoyant note ahead of U . S . inflation data . Nifty Bank index closed at 45502 , up 620 points or 1 . 4 % Technical Outlook :

• The index started the session on a positive note and gradually inched northward amid elevated volatility . As a result, daily price action formed a Inside bar confined within Monday’s trading range

• Going ahead, we expect index to prolong the base formation above 52 weeks EMA . Further, to pause the ongoing corrective move index need to decisively close above previous sessions high (45750 ) failure to do so would lead to prolonged correction towards 44600

• On the upside, index has failed to sustain above 50 -day average (46100 ) for past seventeen sessions making it an immediate resistance for coming week and only a decisive breach above that level would pave way for acceleration of momentum

• Short term support to 44600 -44800 is confluence of :

• 61 . 8 % retracement of October – December rally (42105 -48636 ) at 44600

• Last weeks low at 45071

• rising 200-week ema (44665 )

• Structurally, index is undergoing a retracement of November – December rally wherein it gained around 15 % over 9 week period . Index has so far retraced 50 % of the rally over past three weeks and expected to further undergo consolidation .

Please refer disclaimer at https://secure.icicidirect.com/Content/StaticData/Disclaimer.html

SEBI Registration number INZ000183631