Market Outlook - Technical - By Dharmesh Shah, Head - Technical, ICICIdirect

- Nifty and Banking index closed ~1.5% down in a volatile week, while Pharma and Metal sectors outperformed. Nifty closed at 14618

- We expect Nifty to eventually resolve out of current consolidation and head towards 15400 levels in coming month. Use declines towards 14500-14400 as an incremental buying opportunity as index held key support of 14400 on closing basis despite host of negative news flow related with COVID-19 2nd wave

- Since March 2020, Nifty has a maintained rhythm of not correcting more than 9% and more than 2 consecutive weeks. As we approach price/time wise maturity of correction, we expect index to resolve higher

- Consumption, Pharma and Metals to relatively outperform while BFSI space as limited downsides thus offering favourable risk-reward setup

- Amongst large caps, we prefer HDFC , Adani ports, Asian Paints, Tata Steel, Cipla, Titan while Infoedge, Mindtree, Astral Polytechnik, Bajaj electricals, Voltas, Balkrishna Inds, Escorts, Jindal Steel and Power, PI Industrires are expected to outperform in midcap space

Source : Equity Bulls

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