The market made huge surge with both the Sensex and Nifty gaining over 3.5 per cent on Monday on the back of pollsters predicting a comfortable victory for the ruling BJP-led NDA.

The market made huge surge with both the Sensex and Nifty gaining over 3.5 per cent on Monday on the back of pollsters predicting a comfortable victory for the ruling BJP-led NDA.

There was across the board buying, while bank index outperformed all other sector. The Sensex reclaimed its crucial resistance of 39,000, while Nifty gained 400 points to end above 11,800.

The benchmark index started-off the session with a upside gap opening but did saw some profit booking in the initial hour. However, soon momentum pick up and gradually index rallied beyond 11,800 mark. The banking index once again outperformed the benchmark by rallying more than 4 per cent.

Technical View

"In the recent correction, good amount of long unwinding took place and we hardly saw any relevant shorting. Since last couple of sessions, fresh longs were formed in the index futures. Today as well, we saw massive long additions in the Nifty and Bank Nifty Futures. Meanwhile, build-up in call options was scattered between 11,900-11,500 strikes and we believe these are long formation. On the flip side, fresh writing was observed in 11,300-11,800, said Sneha Seth Derivatives Analyst, Angel Broking.

According to analysts, though the market has taken a massive leap the final verdict is yet to come. Now, all eyes on the actual event on Thursday; but, before this, the Nifty has managed to clock highest ever close on daily chart.

"With almost all other pockets contributing heavily, we expect this rally to extend further at least towards 11,950 or even the magical figure of 12,000 is on cards. On the lower side now, 11,700 followed by 11,591 would now be seen as sheet anchors," said Technical Analyst with a leading brokerage.