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Sensex (59106) / Nifty (17398)

We had a gap up opening to start the week; however, within the first few minutes itself, the prices pared down initial gains. The benchmark didn't show much traction thereafter, but a gradual upside movement was seen towards the latter half of the day. Nifty eventually ended with marginal gains of 0.22% a tad below 17400

In the last couple of sessions, our markets had seen a decent run up and hence, Monday’s session (especially the first half) was more like a breather. The undertone remained bullish, as the broader markets kept buzzing, and intraday dips were seen as a buying opportunity after nearing key support. Prices have now reached a key juncture of resistance placed in the zone of 17450-17600, which is the confluence point of bearish gap, key averages, and a retracement level. Looking at the momentum, we expect these hurdles to be surpassed quite soon. At this moment, it is ideal to focus on a stock-specific approach; because many new themes are likely to get unfolded. For index trades, one should prefer dips as an opportunity. Monday's low around 17300 should be considered as an immediate support, whereas strong support base shifts towards the bullish gap left around 17200-17150. Traders are also advised to keep a close eye on important global and domestic cues that are lined up in this truncated trading week

Nifty Bank Outlook (40813)

The BANKNIFTY started the session on a positive note in line with our benchmark index. However, as the day progressed, the fatigue was clearly observed in some of the heavyweight constituents. Around the midsession, the banking index even slid inside the negative territory. Fortunately, the tail end recovery pulled BANKNIFTY to close with decent gains of half a percent from the previous close. It was kind of see-saw for our markets on the first day of the truncated week. Since the overall undertone is strongly bullish since last 2-3 sessions, the bulls marked their authority at the end. Now, BANKNIFTY has reached its cluster of hurdles. Firstly, the higher end of the ‘Multi-Month Channel’ which coincides with the ‘89-day EMA’. Hence, it would be a daunting for the bulls to overcome a sturdy wall 41000-41200, above which fresh leg of the rally is to be unfolded. On the flipside, 40500-40300 is to be considered as immediate supports.

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