Dalal Street Corner: Market snaps 4-day losing streak to end in the green – what investors should do on Tuesday

The stock markets today snapped a 4-day losing streak on Monday aided by ICICI Bank. Analysts are of the view that the banking index would likely be strengthened more as Kotak Mahindra Bank and Axis Bank are scheduled to come out with their second-quarter earnings of this fiscal on Tuesday.

The Sensex gained almost 150 points to end little before the 61000-mark, while Nifty ended flat above 18100-level at the market close today. In the broader markets, mid and small-cap underperformed than benchmarks to end around 2 per cent lower at the market close on Monday.

See Zee Business Live TV Streaming Below:

Nifty Bank breached a new all-time high, above 41800-level for the third straight session today. The surge in the banking index was led by both private and public sector lenders.

"Market opened weak, however strong support from Banking stocks helped to balance the bearish pressure and lifted the indices to trade on a flat note. Improved asset quality and business growth based on key Q2 results aided the banking sector to improve the outlook leading to outperformance,” Geojit Financial Services Head of Research Vinod Nair said in a note on Monday.

Similarly, Ajit Mishra Religare Broking Ltd Vice President – Research said, “We expect the banking pack to remain in focus as Axis Bank and Kotak Bank will report their numbers on October 26. On the index front, Nifty should hold 17,950 levels for any rebound else profit taking would resume.”

“Needless to say, the scheduled monthly expiry will keep the choppiness high across the board. Amid all, participants should continue with a cautious approach until we see some concrete sign of trend resumption,” Mishra further added.

According to Rohit Singre, Senior Technical Analyst at LKP Securities, “Index managed to close a day at 18125 with minimal gains and formed a hammer sort of candle pattern on the daily chart which is bullish reversal candle pattern by nature.”

He added, “The good support zone is formed near 18030-17970 zone if managed to hold above-said levels then we may see some more extension in current pullback and any dip near mentioned support zone will be again buying opportunity, on the higher side index has formed resistance near 18225-18300 zone fresh move possible only above 18300 zones.”