Benchmark indices ended higher for the second consecutive session on Monday led by buying in IT, oil and gas and banking shares amid positive global cues. Sensex rallied 760.37 points to settle at 54,521 and Nifty advanced 229.30 points to 16,278.50.
Midcap and small-cap indices rose 340 points and 357 points, respectively. Banking, IT, capital goods and consumer durables shares were the top sectoral gainers, with their BSE indices rising 833 points, 832 points, 540 points and 646 points, respectively.
Market breadth was positive with 2,350 stocks ending higher against 1,095 stocks falling on BSE, while 167 shares were unchanged.
Here's a look at what analysts said about the direction the market is likely to take today:
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities
"On daily charts, the Nifty has formed a long bullish candle which suggests continuation of uptrend in the near future. For traders, 16,150-16,200 would act as a strong support zone and above the same, the index could hit the level of 16,400-16,450. On the flip side, below 16,150, the uptrend would be vulnerable."
Nagaraj Shetti, Technical Research Analyst, HDFC Securities
"Nifty is currently placed at the key overhead resistance of the previous opening downside gap of June 13 and also last swing high of around 16,200-16,300 levels. A sustainable move above this area could pull Nifty towards further swing highs. The short-term trend of Nifty is positive. Having placed at the edge of upside breakout of the hurdle 16,200-16,300 levels, one may expect further upside in the market for the short term. The next upside levels to be watched around 16,500-16,600 in the near term. Immediate support is placed at 16,200 levels."
Osho Krishan, senior analyst - Technical & Derivative Research, Angel One
"Any minor correction towards the 16,100-16,140 zone could be seen as a buying opportunity in the near term. On the contrary, the 16,350-16,430 zone is likely to act as the immediate resistance, above which the bulls would strengthen their stance. Considering the recent price action and the respite in the global market, the undertone is likely to be in favour of the bulls. However, one should not be complacent with Monday's gains and must stay abreast with global developments. Simultaneously, looking for opportunities outside the index is advisable, as we may also witness good traction in mid and small-cap counters."
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