Technical Outlook for CNX Nifty
The passing month was devoted to correction as the Nifty index retraced from its record high of 9119.20 and lost more than four and half percent on monthly basis.
It retested upper band of the broadening formation in the first week but failed to surpass the same, which resultant profit taking across the board. The correction continued till the end and finally paused around lower band of the pattern.
This month, we believe Nifty would undergo in a consolidate phase within a broader range of 8380-8930. So, participants are advised to uphold stock specific trading approach and prefer counters from private banking, infra, capital goods, IT, pharma and FMCG for long trades. Despite recent recovery in metal, energy, PSU banking and realty space, their overall trend is still down so choose counters from these sectors for shorting around upper band of the above mentioned consolidation range.