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Nifty

* Nifty oscillated sharply in a range but finally ended the month with decent gains. After the initial up move, it retraced sharply in the first half but recovery in select heavyweights not only pared the losses but also helped the index to close in the green.

* Mixed trend was witnessed on the sectoral front. wherein Auto, Metals and Fin Services outperformed the markets whereas Media, IT and Realty witnessed selling pressure.

* We reiterate our positive view on the index and continue with the "buy on dips" approach until Nifty holds 21900. Going forward, we expect the index to gradually inch higher towards the 22700–22850 zone.

BANKNIFTY

* The banking index started the March month on a strong note and snapped its two consecutive months of underperformance against the Nifty to close the month higher by 2.18%, outperforming the benchmark index.

* PSU Bank continued to inch higher for yet another month to hit new record highs. Private banks also witnessed recovery after 2 months of decline and managed to close higher ~2%.

* The banking index has been trading in a rising channel and currently trading around the middle of the range. Besides, it has also formed a triangle pattern and a breakout above 48,000 zone would fuel momentum. On the downside, the 46500-47000 zone would offer a cushion in case of any profit taking. We feel participation from the private banking majors would play a key role in triggering the next leg of the up move and retesting its previous swing high.

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