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On Monday, the benchmark indices witnessed a stellar rally. The Nifty ended 917 points higher, while the Sensex was up by 2975  points. Among sectors, all the major sectoral indices traded in positive territory, but the IT index gained the most, rallying 6.48 percent.

Technically, after a gap-up opening, the market successfully cleared the 24,500/81000 resistance mark, and post-breakout, positive momentum intensified. A long bullish candle on daily charts and breakout continuation formations on daily and intraday charts indicate a further uptrend from the current levels. We believe that the 24,500/81000 earlier resistance zone has now become a strong support zone for short-term traders.  For day traders, buying on intraday dips and selling on rallies would be the ideal strategy. On the higher side, 25,050–25,200/82700-83000 would be the key resistance areas, while  24,800-24700/81900-81600 would be the first major support zone for the market. 

The recommended strategy should be to take contra bets of creating long positions between 24800-24700 levels, with a stop loss at 24700 on a closing basis.