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Below the Quote on Daily Market Analysis by Mr. Ajit Mishra, SVP - Technical Research, Religare Broking Ltd

The markets experienced a volatile session on Friday but managed to gain nearly half a percent, offering a brief pause after the recent decline. Continuing the trend from the previous session, the Nifty opened with a gap down and dipped in early trade. However, a strong recovery in select heavyweights, particularly from the banking sector, led to a swift rebound. Along with banking, metals performed well, though the IT and FMCG sectors ended in the red. Despite the volatility, the broader indices closed nearly unchanged.

Participants should not overanalyze the single-day rebound and instead wait for a decisive close above 25,150 in Nifty for any signs of a sustained recovery. After the strong recovery in the banking sector, the market's reaction to major banks like HDFC Bank and Kotak Bank in early trade on Monday will likely set the tone for the session. Meanwhile, we maintain a cautious outlook on the markets and advise keeping a close watch on position sizes amidst the ongoing choppiness.

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