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Sensex (61964) / Nifty (18314)

The trading activity for the week started on a flat note, however, without wasting any time Nifty started climbing higher. Although there was some stagnation during the mid-session, with prices staying within a range, the broader markets remained active. Towards the end of the day, there was another round of buying, resulting in the Nifty closing above 18300 with a 0.61% gain.

Looking at the daily chart, there was significant buying momentum following Friday's late session buying, allowing prices to surpass the 18300 level that had acted as a barrier twice during the last week. The bulls have regained control, and as we mentioned in our previous commentary, the base level seems to have shifted higher to the range of 18050-18100, while the immediate target is now set on the 18450-18500 levels. Traders should maintain a positive bias and view dips as buying opportunities, with immediate support expected around the 18200 level.

Nifty Bank Outlook (43885)

The banking started the session on a muted note unlike the benchmark index which showed its intentions right from the opening trade. As the day progressed, the divergence kept on increasing in both these key indices. Finally, some respite was seen in banking conglomerates in the latter half, which helped it restrict its losses to merely two tenths of a percent.

Yesterday, mostly the helping hand was provided by heavyweight IT stocks, whilst the banking space kept sulking for a major part of session. However, since the overall sentiments are uplifted in the market, we expect this tentativeness to end soon in banking stocks. Hence, a breakout beyond previous highs of 44150 is very much on cards. Meanwhile, traders should remain light and use declines to add longs in this space. As far as levels are concerned, 44000 - 44150 are to be seen as immediate hurdles, whereas on the flipside, the strong support is visible in the zone of 43700 - 43500 levels.

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