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Sensex (62787) / Nifty (18594)

The markets experienced a strong start to the week due to positive developments in the US markets over the weekend. However, after the initial surge, there was limited movement, and prices fluctuated within a range of 50-60 points throughout the day. Overall sentiment remained optimistic, and the Nifty index managed to gain 0.32 percent, reaching the 18600 level once again.

This situation closely resembled what occurred last Monday, with a gap-up opening driven by strong global cues but the markets failing to capitalize on the initial gains. The bulls appear to be fatigued when it comes to the key index, as despite some positive triggers in the last few sessions, there is a lack of conviction in the movement. On the daily chart, prices seem to be entered a consolidation phase, with immediate support around 18500-18450, while immediate resistance is observed at 18650-18700. A sustained close above this crucial resistance level is needed to initiate a momentum move, and it appears that the markets are awaiting a trigger for this to happen. Perhaps it will come after the RBI policy announcement or through a significant contribution from one of the major heavyweight stocks. Until then, traders should maintain a positive bias and consider buying opportunities during dips toward the aforementioned support levels.

Nifty Bank Outlook (44102)

Once again, the week started with a good bump up owing to cheerful global peers. However, similar to previous Monday, the follow up was missing, which resulted in mild profit booking towards the fag end of the session. Eventually, BANKNIFTY ended the session with nearly four tenths of a percent gains.

Our key indices are clearly lacking conviction at higher levels. There couldn't have been better set up for a strong move yesterday. The bulls once again failed to capitalize on the early lead; but fortunately managed to settle BANKNIFTY above the 44000 mark. Going ahead, 44270 - 44500 remains to be a sturdy wall; whereas on the flipside, 44000 - 43800 are to be treated as immediate supports. We continue to remain hopeful and expect the index to go beyond recent hurdles soon.

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