From its recent swing low of 23,606 on July 24, the benchmark has now recovered 677 points, marking its highest closing level in the last eight trading sessions.
Among the Nifty constituents, Jio Financial Services, Hindustan Unilever and Infosys emerged as the top gainers, while Adani Ports, Mahindra & Mahindra and Power Grid were among the biggest losers.
Sectoral breadth remained positive, with all indices except Auto and Realty ending in the green. IT, Metal and FMCG stocks led the gains.
The broader markets also participated in the rally. The Nifty Midcap 100 advanced 0.82%, while the Nifty Smallcap 100 gained 1.48%.
Meanwhile, the Indian rupee appreciated for the fourth consecutive session, rising 20 paise to close at 95.65 against the US dollar. The gains were supported by strength in regional currencies, a weaker dollar index and robust domestic equity markets.
Nandish Shah of HDFC Securities said the short-term trend has turned bullish after the Nifty reclaimed its 20-day, 50-day and 100-day exponential moving averages. The index has also broken above the downward-sloping trendline connecting the recent swing highs of 24,530 and 24,367, signalling a shift from a corrective phase to bullish momentum.
According to Shah, the next key hurdle is placed around 24,368, which coincides with the 200-day EMA. A sustained move above this zone could pave the way for further gains. On the downside, immediate support has shifted higher to the 24,000-24,050 zone, and the short-term bias is expected to remain positive as long as the index holds above this range.Rupak De of LKP Securities expects the index to remain firm in the near term, with the potential to move towards the 24,450-24,500 zone. Immediate support is placed at 24,100, and a break below this level could trigger profit booking towards 23,950.
Nagaraj Shetti of HDFC Securities said the Nifty has decisively crossed the key resistance zone of 24,000-24,200, strengthening the bullish setup. He expects the index to target the 24,500-24,600 zone in the short term, while immediate support is seen at 24,100.
The Bank Nifty also traded with a positive bias. After opening with a gap-up, the banking index shrugged off early weakness and advanced steadily through the day to settle at 57,206, up 0.79%.
Sudeep Shah of SBI Securities said the immediate resistance for Bank Nifty is placed in the 57,600-57,700 zone. A sustained move above this hurdle could extend the recovery towards 58,100, followed by 58,500. On the downside, immediate support is seen in the 56,800-56,700 zone.
