Equity benchmark Sensex ended 226 points higher on Monday following gains in index heavyweights TCS, HCL Tech and Reliance Industries amid a positive trend in global markets.

After rallying over 450 points during the day, the 30-share index pared some gains to end 226.47 points or 0.41 per cent higher at 55,555.79. Similarly, the broader NSE Nifty advanced 45.95 points or 0.28 per cent to 16,496.45.

"Nifty gave a strong opening today, it opened at 16592 from where it experienced selling and made a low of 16395 and closed at 16496 up by 45 points. Nifty has resistance in 16550 to16600 range. It has strong support in 16350 to 16420 range. New longs should be considered only on closing above 16550 level with higher than average volumes." Mr.Gaurav Udani, CEO & Founder, ThincRedBlu Securities.

Palak Kothari, Research Associate, Choice Broking said, "On the technical front, the index has formed a hammer candlestick on four hourly charts which points out strength for upcoming sessions. Moreover, the Index has taken support from 89-HMA and has been trading above 21&50 DMA, which suggest strength for the upside. Momentum Indicator MACD is also showing positive crossover on daily time frame which further adds strength in the index. At present, the Nifty index has immediate resistance at 16,600 levels while downside support shifted up to 16,350 levels."

After two days of sharp correction, the market witnessed a relief rally due to strong global market performance, said Shrikant Chouhan, Executive Vice President, Equity Technical Research, Kotak Securities Ltd. "From the day's highest level, the Nifty shed nearly 200 points before recouping some lost ground. However, one more time it took support near the 10 day SMA and reversed sharply. Technically, on intraday charts the index has formed a double bottom formation. We are of the view that the 10 day SMA or 16,450 would be the immediate support for the bulls. As long as it is trading above the same, an upside could lift the index up to 16,550. On the other hand, trading below 16,450 could possibly open one more leg of correction up to 16,350-16,300 levels," he said.

According to Deepak Jasani, Head-Retail Research, HDFC Securities, "Nifty filled the downgap made on Friday by opening higher but closed below it as it gave away a large part of intra day gains. However, the fact that it recovered from the intra day low and did not make a new low compared to the previous day is encouraging. Advance decline ratio improved marginally compared to the previous day but is still much below 1:1. 16,376-16,396 is the important support band now for the Nifty, while a close above 16,569 would result in return of some confidence in the markets."

Mohit Nigam, Head - PMS, Hem Securities, said, "Indian equity markets lost momentum after initial uptick in the morning as investors continue to remain cautious. Benchmarks closed a little higher while broader markets plunged yet again. Nifty Midcap 100 and Nifty Smallcap 250 fell 0.86% and 1.98% respectively. Dollar index rose amid Fed tapering and Brent also jumped after last week's fall. Sectorally, IT remains the only outperformer, Auto pack falls. HCL Tech tops Nifty50 chart on deal win from Munich Re, a leading global reinsurer. Escorts jumped over 9percent during intraday as its JV partner Kubota guides for a brighter future in the coming time. Nuvoco Vistas faces tepid listing at a discount of 17 percent amid weak market sentiments Aurobindo Pharma climbs back on cancellation of the deal to buy 51 percent stake in Cronus Pharma Specialities. On the technical front, 16,300 and 16,750 are immediate support and resistance in Nifty 50."