Gold price today and much more: Consolidation likely in Rs 45200- Rs 46200 levels - Latest updates by ICICI Securities

Gold price started Tuesday’s trade on a weak note opening lower with a gap and recovered gradually during most of the session till a high of Rs 45650. Prices have recovered slightly in the last session as US Treasury yields eased and offset pressure from a stronger dollar. Overall, ICICI Securities expect gold prices to consolidate in the range of Rs 45200- Rs 46200 levels in the short-term.
 
The US$INR March futures fell further as the dollar index started weakening once again while risk currencies exhibited some bounce after a sharp decline was seen on Friday. However, we expect US$INR futures to find support near Rs 73.50 levels in the short-term. The dollar-rupee March contract on the NSE was at Rs 73.60 in the last session. The open interest remained almost unchanged in the March as well in the April series. Intra-day strategy is to Buy US$INR in the range of Rs 73.48 – Rs 73.52.
 

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Technical Outlook on Nifty:
 
The daily price action formed a bull candle with a lower shadow carrying a higher high-low, indicating a pause in downward momentum as the index managed to end above the immediate resistance of 14900. Going ahead, follow through strength above Tuesday’s high of 14959 (on a closing basis) would be required to confirm the conclusion of the ongoing corrective phase. Failure to do so would lead to prolonging of ongoing consolidation in the broad range of 14900-14500 amid stock specific action as we expect the relative outperformance of broader markets to endure. ICICI Securities believes that the ongoing healthy retracement is helping the index to form a higher base around the 14500 mark and paving the way for the next leg of the up move.
 
Hence, any decline from here on should be capitalised on to accumulate quality large cap and midcap stocks. Key point to highlight during the past two weeks is that the Nifty midcap index has been evidently outpacing the benchmark by maintaining its record setting spree despite ongoing consolidation in the benchmark. Going ahead, ICICI Securities reiterates constructive stance on the broader market. Hence, ICICI Securities expect further catch up activity to be seen in small caps as it is still 14% away from its life-time highs.

Structurally, formation of higher peak and trough on the larger degree chart backed by strengthening market breadth signifies a robust price structure that makes us confident of revising the support base at 14500.  Price wise the index has undergone slower pace of retracement, as over past 11 sessions it retraced 50% of preceding 11 sessions up move (13597-15432), placed at 14514.