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The Nifty during the current week has registered a breakout above the symmetrical triangle formed since mid-December 2018 high of 10,985. The index has now retraced past three sessions.

Going forward, we expect stock specific performance to continue as earnings season gathers pace while we expect the index to strengthen above December high (10,985) and eventually head towards the earmarked target of 11,100 in coming weeks as it is the confluence of: 

A) 61.8% retracement of entire corrective phase since August 2018 (11760–10005), at 11090.

B) 161.8% external retracement of last decline (10924-10629), at 11106 

Structurally, the index since October low (10005) has exhibited the tendency of not retracing its preceding up the leg for more than 61.8% (on a closing basis). While time-wise, each of the corrective declines has not lasted for more than three consecutive sessions.