The benchmark Nifty 50 extended its winning streak to the third session and scaled a fresh record high of 21,594 on December 27. Positive trends across global markets also helped lift sentiment for domestic equities.
The overall market breadth also tilted in favour of gainers as about 2,007 shares gained and 1,166 traded in loss, while 103 were unchanged. Around noon, the Sensex was up 469.18 points or 0.66 percent to 71,805.98, and the Nifty was up 141.30 points or 0.66 percent to 21,582.60.
Bulls were also supporting the market as put writers turned active at 21,500, followed by 21,550 strike prices, suggesting limited downside from the current levels. On the upside, resistance from call writers was weak as they added positions across 21,550-21,700 strikes.
"Following the significant sell-off observed last Wednesday, there has been a gradual recovery over the past three sessions, reclaiming most of the lost ground seen from the fall that originated from the all-time high levels. The upcoming sessions around the 21,550 - 21,600 range are critical, representing a formidable resistance formed by the reciprocal retracement of the October decline," brokerage firm Angel One said in a note.
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The firm still advises investors to warrant some caution as in the backdrop of the year-end, it might be prudent to secure timely profits before the start of the new calendar year.
"On the downside, there is no prominent weakness apparent as the year concludes, and any intermittent declines could be viewed as potential buying opportunities," the firm said. In this context, Angel One pegged the 21,330-21,300 range as an immediate support for the index.
Cement stocks like Dalmia Bharat, Ramco Cements, Ambuja Cement, and Ultratech Cement recorded strong addition of long positions as they were buzzing in trade in the cash market.
Other counters like Vedanta, Metropolis Health and Dr Lal Pathlabs saw a surge in short additions.
Also read | D-St bulls charge again: Nifty scales fresh record high, eyes 22,000; Sensex up nearly 500 points
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