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Sensex (65402) / Nifty (19435)

Monday morning, Asian markets were slightly under pressure, which influenced our markets to open the week on a sluggish note. In the initial hour, this weakness persisted, leading to a test of levels around 19250. Fortunately, the downward movement ceased, and a recovery ensued from crucial supports. In the latter part of the day, there was robust buying activity in significant heavyweight stocks, aiding the Nifty index in regaining its earlier losses from the morning and ultimately concluding just below 19450 without any significant change from Friday's closing prices

Despite the lack of substantial price alteration from the Friday's close, there were noteworthy fluctuations observed on both sides of the market trend. In the morning, prices fell below recent low points, but the key 50 EMA acted as a strong fortress for the bulls, leading to a rebound and forming a pattern that favours the bulls. The broader outlook remains sideways, and with prices bouncing back from the lower range, there's a strong likelihood of prices attempting to reach the upper boundaries of 19530 and subsequently the 19650 levels in the coming sessions. However, for this it requires continued support from key heavyweight stocks and global market cues.

Nifty Bank Outlook (44091)

The financial space has been the weakest link of late and sluggish global peers in the morning, added further nervousness at the opening on Monday. We started cautiously and within the initial fifteen minute, the banking index sneaked below 43800. Fortunately, there was no follow through selling around the mid session, which helped index stabilized at lower levels. In fact, we saw a modest recovery in the latter half of the session to pare down losses and went on to conclude the session convincingly above the 44000 mark.

From a technical perspective, the overall chart structure looked a bit dented in BANKNIFTY after Friday's decline below 44500. However, the smart recovery observed precisely from the 89 EMA on the daily chart is indeed an encouraging sign for market participants. Going ahead, it will be interesting to see how the situation unfolds and if there is a continuation of the up move above 44500, which has recently served as a support, we may see recent pain ending the financial space. On the downside, the range of 43700-43800 should now provide an immediate cushion. Traders interested in index-based trading are advised to maintain a positive bias until the mentioned support zone is held

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