The market bounced back as bargain hunting emerged after the recent correction. The Sensex surged 303.60 points, or 0.89 per cent to 34,445.75 and the Nifty gained 91.55 points, or 0.87 per cent, to 10,582.60. Both Sensex and Nifty hit three-week closing highs.
The BSE Mid-Cap and Small-Cap indices rose 0.74 per cent The 0.88 per cent, respectively, underperforming the Sensex.
Among the sectoral indices, BSE Realty (up 3.3 per cent) Auto (2.22 per cent) and Bankex (1.63 per cent) outperformed the Sensex. The BSE Teck and IT were down 0.69 per cent and 1.1 per cent, each.
According to Motilal Oswal Securities, the Nifty witnessed sustained buying interest for the second consecutive trading session. It rallied by more than 200 points from 10,400 to 10,600 zones in the last two sessions and managed to close above its 50 EMA (exponential moving average). It formed a Bullish candle on the daily scale, which indicates that bulls are having an upper hand in the market. Now the index has to continue to hold above 10,500 zones to extend its move towards 10,620 and then 10,720-marks. On the downside, supports are seen at 10,500 and then 10,430 levels.
Jayant Manglik, president, Religare Broking, said: The market made a firm start and gained nearly a percent, continuing Friday's rebound. Upbeat global cues and bargain hunting in select index majors helped the benchmarks to move higher and settle around the day's high.
“This is a holiday shortened week and we've some important data viz. GDP data, auto and cement monthly sales figure lined up ahead. Favourable global cues have also played a crucial part in this bounce so far. Going ahead ,traders should closely watch local developments along with cues from world markets. Nifty should decisively hold above 10,600 for further recovery else profit taking will resume.