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Sensex (65628) / Nifty (19529)

The buoyancy in Indian equities was quite evident amidst the favorable global cues, as the benchmark index soared above 19500 at the opening bell. However, the bulls refrained from capitalizing on the head-start as Nifty was at the crucial pivotal resistance zone and patiently waited for a dip. And as soon as a modest dip was seen, bulls latched on to the opportunity and made a strong recovery to reclaim their presence. Amidst the choppy yet joyous day of trade, the Nifty50 index concluded the session on a confident note, above 19500, procuring 0.48 percent at the start of the new week.

Technically, the market has shown its intent and it would be just a matter of time before the benchmark would come out from the broader consolidation zone to regain a strong momentum. The index has finally surpassed the 20 DEMA on the daily time frame, adding to the bullish undertone and is likely to head towards the bearish gap in the comparable period. As far as levels are concerned, 19400 is expected to cushion any upcoming blips, while the sacrosanct support lies around 19300-19250 zone. On the flip side, the immediate resistance is placed around 19600, followed by the bearish gap of 19680-19700. Meanwhile, in the last two trading sessions, an intense bout of short covering, followed by long addition could be seen.

Nifty Bank Outlook (44578)

The Bank Nifty began the week on a positive note, but shortly after the opening bell, prices dipped from their initial highs in the first hour of trading. This presented an opportunity for bulls, as prices gradually climbed higher throughout the rest of the day, retesting around morning highs. Eventually, the Bank Nifty ended with gains of 0.32%, just below the 44600 mark.

It was a relatively calm day for this high beta index, following the strong traction observed on Friday, as major action yesterday was seen in the broader market. The subdued activity may be attributed to prices nearing the upper range of the recent consolidation phase, which is around the 44800 – 45000 range. This particular range will be closely monitored in the upcoming sessions, as a sustained move beyond it could signal a continuation of the uptrend where immediately 45600 – 45800 could be tested in the near term. The key highlight from yesterday's trading session is the willingness of traders to buy into initial dips, and going ahead, it appears that any intraday dips in the coming session should be again considered as a buying opportunity. In such a scenario, the strong immediate support is noted around the 44300 – 44200 range

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