Banking Index Breaks Above 20-DEMA - Religare Broking Ltd
Nifty
* Nifty kicked off the week on a strong note on Monday, with benchmark indices extending their gains amid easing crude oil prices, encouraging quarterly earnings, and sustained buying in financial heavyweights.
* Technically, the Nifty has strengthened its bullish structure by decisively surpassing the key resistance zone of 24,400, which coincides with the 200-day DEMA.
* This breakout reinforces the ongoing recovery and opens the door for a move towards the 25,000–25,200 zone in the near term.
* With the broader trend turning increasingly constructive, we continue to advocate a "buy -on-dips" strategy, preferring relatively stronger sectors such as banking, financials, auto, and realty, while maintaining disciplined overnight risk management.
BANK NIFTY
* The banking index demonstrated strong bullish momentum, breaking above and sustaining decisively over the 20 DEMA.
* Following a gap-up opening, the index consolidated within a narrow range, indicating healthy absorption of profit-taking.
* All constituents closed in positive territory, with Axis Bank and Canara Bank leading the upside.
* Immediate resistance positioned around 59,000, while 57,300 continues to act as a crucial support zone.
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