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Below the Quote on Market Morning Inputs by Shrikant Chouhan, Head Equity Research, Kotak Securities

Benchmark indices witnessed positive momentum on Monday; Nifty closed 112 points higher, while Sensex was up 341 points. Among sectors, healthcare and pharma indices rallied over 1.5 per cent, while the media index was the biggest loser, shedding nearly 1 per cent. Technically, the market once again found support near 22,350/73,800 and bounced back sharply.

On the daily chart, it has formed a bullish candle, and on the intraday chart, it is maintaining a higher bottom formation, which is largely positive. We believe that as long as the market is trading above 22,350/73,800, the bullish sentiment is likely to continue. On the higher side, 22,600/74,500 would be the immediate resistance zone for the upside. After a breakout above 22,600/74,500, the market may head towards 22,675-22,750/74,700-74,900. On the other hand, if the market drops below 22,350/73,800, the sentiment may change. Below this level, traders may prefer to exit their long positions.

The strategy should be to buy if it crosses the 22600 level as the market has spent maximum time below this level. For this keep a stop loss at 22450.

For the Bank Nifty, a double bottom support is placed at 47700. As long as it is trading above this level, a pullback formation is likely to continue. On the higher side, it could move up to the 20-day Simple Moving Average (SMA), or  48600 and 48800. However, if it closes above 48800, the sentiment could change, and it may even retest the levels of 49500

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