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Here’s a summary of the key factors and technical analysis which dictate market on Monday:

Nifty Index:

• Signs of Weakness: The Nifty index is showing signs of weakness, characterized by a lower top formation.
• Put-Call Ratio: The put-call ratio is currently at 0.98, approaching levels that suggest potentially oversold conditions.
• Support Levels: Immediate support for Nifty is at 19,250, with the 50-day moving average (50-DMA) around 19,270. A breach below 19,250 could lead to further declines, targeting 19,191 and 18,888 levels.
• Resistance Levels: Above 19,460, short covering towards 19,600 is expected. To re-establish bullish momentum, Nifty needs to rebound above the 20-DMA at 19,650.

Bank Nifty:

• Head and Shoulder Formation: Bank Nifty has witnessed a breakdown of a head and shoulder formation below the crucial support level of 44,444.
• Support Levels: It is currently respecting its 100-DMA at 43,600. Immediate support is at 43,300, with a key support level at the 200-DMA around 42,800.
• Resistance Levels: Key hurdles on the upside for Bank Nifty are at 44,200 and 44,500.

FII/DII Action:

• The activity of Foreign Institutional Investors (FIIs) and Domestic Institutional Investors (DIIs) will be crucial for market performance.
• FIIs were net sellers on Friday, selling Indian equities worth Rs 266.98 crore.
• DIIs were net buyers at Rs 339.18 crore.
• It’s noted that after three months of sustained buying, FIIs turned sellers in August. FIIs have started selling in financials, although DII buying has partially countered this trend.

These insights provide an overview of the technical factors influencing the Nifty and Bank Nifty indices, as well as the impact of FII and DII actions on the market. Please remember that the stock market can be volatile, and it’s essential to consider various factors and conduct your research before making any investment decisions.