The index opened with a gap-up, traded in a narrow range for most of the session and witnessed a sharp surge towards the close, aided by the introduction of the new closing auction session.
The Nifty settled at 24,774, up 0.84%, marking a decisive technical breakout after several sessions of consolidation.
Monday also marked the implementation of SEBI’s new Closing Auction Session (CAS) mechanism for stocks with listed futures and options contracts. The new framework replaces the earlier system where closing prices were derived from the volume-weighted average price (VWAP) of trades executed during the final 30 minutes of continuous trading.
Under the revised mechanism, buy and sell orders placed near the market close are matched through a single-price auction, with the discovered price becoming the official closing price. The move aims to improve price discovery, enhance transparency and concentrate end-of-day liquidity into one auction.
Among individual stocks, Grasim Industries and TCS emerged as the top gainers on the Nifty, rising over 4% each. Apollo Hospitals and Sun Pharma ended as the biggest laggards.
Sectorally, Nifty IT was the best-performing index, followed by Nifty Tourism, with both advancing more than 2.5%. Nifty Media and Nifty Capital Market indices ended the session in the red.
The Nifty Midcap index also opened with a gap-up, advanced steadily and traded sideways for much of the day before a sharp move during the closing auction lifted it 1.21% to 63,679. The index touched a fresh all-time high of 63,682 and closed above the key resistance zone of 63,200-63,250.
The Nifty Smallcap index outperformed the broader market, witnessing sustained buying throughout the session after a gap-up opening. It now trades just 0.65% below its record high.
Market participants expect sentiment to remain constructive, supported by healthy Q1FY27 earnings, easing crude oil prices and improving global risk appetite. Investor confidence also received a boost after US President Donald Trump said negotiations with Iran were expected to resume, raising hopes of a diplomatic solution following recent geopolitical tensions.
Going forward, investors will closely watch the RBI Monetary Policy Committee meeting, with the policy decision due at 10 am on Wednesday (August 5). Market participants will also track Brent crude prices, corporate earnings and India’s manufacturing and services PMI data for further cues.
The primary market will remain active this week, with Manipal Health Enterprises, Juniper Green Energy and MV Electrosystems scheduled to list on the exchanges.
Nagaraj Shetti of HDFC Securities said the presence of multiple unfilled upside gaps over the last six to seven sessions reflects the strength of the ongoing rebound.
He expects the Nifty to remain in an uptrend, with the next upside targets placed at 24,800-25,000, while immediate support is seen at 24,400.
Sudeep Shah of SBI Securities said immediate resistance for the Nifty is placed in the 24,920-24,950 zone. A sustained move above these levels could extend the rally towards 25,100 and then 25,250. On the downside, immediate support is placed at 24,630-24,600.
LKP Securities’ Rupak De said the Nifty has staged a meaningful recovery after nearly two months of consolidation and is now testing its 200-day moving average, a crucial technical resistance.
De believes the index could either face profit booking and retreat towards 24,400 or, if it sustains above 24,800, witness fresh buying that could push it towards the 25,000-25,350 zone.
