The benchmark index gained 231 points to close at 23,853. After opening with a gap-up of 362 points on strong global cues, Nifty hit its intraday high within minutes of the opening bell. However, the momentum faded through the day as profit-booking emerged at higher levels, dragging the index nearly 200 points lower from its peak before it settled with healthy gains.
Market sentiment remained upbeat after reports of easing tensions in West Asia and progress towards a ceasefire agreement between the US and Iran. Despite the intraday consolidation, Nifty managed to hold on to key breakout levels, indicating that the broader trend remains positive.
Among heavyweight stocks, Shriram Finance, Trent and HDFC Life were the top contributors to the rally, while NTPC, Bajaj Auto and ONGC ended among the notable laggards.
Sectorally, the rally was broad-based. Realty, Consumer Durables and Auto emerged as the best-performing sectors, while Pharma, Healthcare and Media were the only indices to end in the red.
The broader market also participated in the advance, with the Nifty Midcap 100 and Nifty Smallcap 100 gaining 1.3% and 1.1%, respectively.
Analysts believe the near-term market outlook remains constructive. Investors will continue to monitor developments around the formal US-Iran agreement expected on June 19, movements in crude oil prices, foreign institutional investor flows and inflation trends for further direction.
Nandish Shah of HDFC Securities said Nifty decisively reclaimed its 50-day DEMA, placed near 23,772, during Monday’s gap-up opening, reinforcing the positive short-term bias. He expects immediate resistance around 24,100, while the 23,600-23,700 zone should act as support.
According to Nilesh Jain of Centrum Finverse, the 24,000 mark remains a crucial psychological hurdle for the index. Having regained its 50-day moving average near 23,750, Nifty is now well positioned for a move towards 24,300 if it manages a decisive breakout above 24,000.
He recommends a buy-on-dips approach as long as the index remains above 23,200.
Nagaraj Shetti of HDFC Securities believes a sustained move above 24,100 could pave the way for an advance towards 24,500 in the near term, while immediate support is placed at 23,650.
Rupak De of LKP Securities noted that the day’s consolidation was a natural reaction following the sharp gap-up opening.
As long as Nifty holds above the 23,800 mark, the positive undertone is likely to remain intact, with potential upside towards the 24,000-24,200 zone. A break below 23,800, however, could trigger a phase of consolidation and cap near-term gains.
