The market continued its upward momentum on Monday with the Sensex gaining 249 points, or 0.6 per cent to close at 39,683 on the back of strong buying in heavyweights like Tata Steel, Yes Bank, NTPC, Larsen & Toubro, and Axis Bank.
The Nifty made strong gains and broke past the 11,900-mark to end the day at 11,925, up 81 points, or 0.68 per cent.
The market breadth was in favour of buyers with about 1,331 stocks gaining and 470 shares declined on the NSE.
Among sectoral indices, eight of the 11 indices finished the session in the green, with Nifty Metal, Nifty Realty and Nifty PSU Bank, all rising over 2 per cent.
The broader markets outperformed the Mid-Cap gained 1.1 per cent or 169 points to settle at 15,114 levels, while the Small-Cap rose 260 points, or 1.8 per cent, to finish at 14,959.
According to analysts, with the markets surging higher, the underlying trend remains up. Markets are trying to revisit the Nifty highs of 12,041 made last week and upsides are likely in the near-term once the immediate resistance of 11,957 is taken out. Crucial supports to watch for resumption of weakness are at 11,812-11,658.
"The Nifty closed in the positive territory in last trading session and it has started to form higher tops and higher bottoms on the hourly charts. The hourly, daily and weekly momentum indicator MACD (Moving Averages Convergence Divergence) is well into buy mode which is quite positive. The target in the short term is 12,050 whereas the support is 11,870," said Jay Thakkar, Head Technical and Derivatives Research - AVP Equity Research, Anand Rathi Shares.
After last week's wild swings, the volatility was likely to subside and considering the overall development on Friday, we were expected to have a steady up move on Monday. Markets did not disappoint and Monday's intraday move was very much on expected lines.
"We continued our march towards the mount 12,000 which needs to be conquered on a sustainable basis. In fact, it would merely be a formality now and soon we would see it happening in reality. As far as levels are concerned, 12,000 - 12,041 would be seen as immediate hurdles whereas on the lower side, 11,859 - 11,812 are likely to provide support on an intraday basis," Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel Broking.
"As a trader, one needs to focus more on individual stocks from the broader market as we expect lethargic moves from previous index drivers (mentioned in the earlier report as well). The way overall 'Midcap' is shaped up, we do not expect this optimism to halt anytime soon," he further said....