However, some consolidation near the highs was followed by profit booking in the final hour, which erased over 130 points from the peak.
Despite the late pullback, the index ended 196 points higher at 23,777, marking its third consecutive session of gains.
Among stocks, Jio Financial, Eternal, Tech Mahindra and HCL Tech were the top gainers, while Cipla, Coal India and Hindustan Unilever saw selling pressure and ended among the laggards.
On the sectoral front, most indices closed in the green, barring FMCG and metals. Media, IT and realty stocks led the gains.
Broader markets outperformed the benchmarks, with the Nifty Midcap 100 rising 2.02% and the Nifty Smallcap 100 advancing 1.67%.
In the currency market, the rupee remained under pressure amid strong dollar demand from oil importers and continued foreign fund outflows.
The Reserve Bank of India intervened by selling dollars to curb excessive volatility. Pressure on the currency may persist if crude oil prices remain elevated.
Going ahead, investors will track developments in West Asia, crude oil price movements and foreign fund flows for further direction.
Updates on the India-US trade agreement and the upcoming Federal Reserve policy decision will also remain key triggers.
Technically, the Nifty continues to trade below its key moving averages, indicating that the broader trend remains weak despite the recent recovery.
Nagaraj Shetti of HDFC Securities expects the index to sustain its upward momentum, with a potential move towards 24,000-24,200 in the near term. Immediate support is seen at 23,550.
LKP Securities’ Rupak De also remains positive, expecting the index to move towards 24,250, while placing near-term support at 23,500.
From its recent swing low of 22,953, the Nifty has rebounded over 900 points and reclaimed its 5-day EMA at 23,664 for the first time since February 26. However, it still trades below the 20- and 50-day EMAs, suggesting the broader downtrend may persist and could trigger intermittent profit booking, said Vinay Rajani of HDFC Securities.
He sees resistance at 23,860-24,000 and support shifting higher to 23,350.
Sudeep Shah of SBI Securities pegged immediate resistance at 23,900-23,950. A sustained move above this zone could push the index towards 24,100 and then 24,300. On the downside, the 23,600-23,550 zone is likely to act as a strong support.
