Market Recap: Bulls Take Charge on Monday

Index Surge

On Monday, the benchmark indices bounced back sharply; the Nifty ended 221 points higher, while the Sensex was up by 678 points.

Sectoral Overview

Among sectors, almost all major sectoral indices traded in positive territory, but the IT and Tourism indices outperformed, gaining over 1.5%.

Technical Analysis

Technically, after a muted open, the market successfully cleared the 20-day SMA (Simple Moving Average) or the 24,850/81,500 resistance mark. Following the breakout, positive momentum intensified.

On daily charts, it has formed a bullish candle, and on intraday charts, it is holding an uptrend continuation formation, which is broadly positive.

Key Support & Resistance Levels

Strategy Outlook for Day Traders

We believe that the 20-day SMA or the 24,850/81,500 and 24,775/81,200 levels are key support zones for day traders, while 25,100/82,300 and 25,150/82,500 would act as crucial resistance levels for the bulls.

For day traders, buying on intraday dips and selling on rallies would be the ideal strategy. However, below 24,775/81,200, sentiment could turn negative. If the market drops below this level, traders may prefer to exit their long positions.

Summary

• Nifty and Sensex showed a strong recovery.

• IT and Tourism sectors were the top performers.

• A breakout above the 20-day SMA has triggered positive momentum.

• Maintain caution around the 24,775/81,200 support zone; watch for resistance at 25,150/82,500.