The index opened 161 points higher and extended gains throughout the session, ending near the day’s high at 23,995, up 0.96%. The recovery also erased the losses recorded over the previous two trading sessions.
The rebound came after crude oil prices retreated amid easing geopolitical tensions in West Asia, providing relief to Indian equities after last week’s sell-off.
Among Nifty constituents, Eternal, IndiGo and Infosys were the top gainers, while ONGC, HDFC Life and HDFC Bank were the biggest laggards.
Sectoral performance was broadly positive, with all major indices ending in the green. Media, IT and Realty led the gains.
Broader markets also participated in the rally. The Nifty Midcap 100 rose 1.1%, while the Nifty Smallcap 100 gained 1.3%.
Markets are expected to remain volatile on Tuesday due to the expiry of NSE’s monthly derivatives contracts.
Going ahead, investors will continue to track geopolitical developments in West Asia and movements in crude oil prices, which remain key drivers for domestic markets.
At the same time, the Q1FY27 earnings season is gathering pace and is expected to drive stock-specific action. Investors will also watch the US Federal Reserve’s policy decision on Wednesday, along with Chair Jerome Powell’s commentary, for clues on the future interest rate trajectory.
What analysts say
Nagaraj Shetti of HDFC Securities said the Nifty has rebounded sharply from the crucial support zone around 23,600 and is now approaching the immediate resistance of 24,000-24,100.
According to Shetti, a sustained move above 24,100 could pave the way for a rally towards 24,500 in the near term, while immediate support is placed at 23,800.
LKP Securities’ Rupak De said the Nifty has reclaimed its 50-day exponential moving average (EMA), signalling improving momentum.
He believes a sustained move above 24,000 could extend the rally towards 24,250-24,300. However, failure to hold above that level may lead to a pullback towards 23,800.
Nandish Shah of HDFC Securities said the Nifty has recovered more than 400 points from Friday’s low of 23,606 and reclaimed its 50-day DEMA at 23,979.
He added that 23,606 remains a crucial support level as it coincides with the rising trendline connecting the April and June swing lows. However, the broader trend remains choppy as the index continues to trade below its 20-day and 100-day EMAs, with a lower-top, lower-bottom pattern still intact. A decisive close above 24,200 would be needed to strengthen the bullish momentum. Immediate support is seen at 23,800, followed by 23,600.
Bank Nifty outlook
The Bank Nifty underperformed the headline indices on Monday. The banking gauge opened with a gap-up but traded in a narrow 401-point range – its smallest intraday range since May 22 – before ending 0.69% higher near the 57,100 mark.
Sudeep Shah of SBI Securities said the 57,500-57,600 zone is likely to act as an immediate resistance. A decisive breakout above 57,600 could trigger fresh buying and lift the index towards 58,200. On the downside, the 56,700-56,600 zone, where the 100-day EMA is placed, will serve as a key support area.
