Mumbai, Dec 4 (IANS): The benchmark indices reached new record highs on Monday, with Nifty surpassing 20,650 and Bank Nifty achieving a record high, gaining 1617.20 points, said Mandar Bhojane, Research Analyst at Choice Broking.

The Nifty closed the day with a substantial gain of 418.9 points or 2.07 per cent, settling at 20,686.80. At close, the Sensex experienced a significant surge, rising by 1,383.93 points or 2.05 per cent to reach 68,865.12.

This positive market momentum reflected an overall sense of optimism and confidence in the financial markets.

Bulls demonstrated strong dominance in Monday's trade, propelling the index higher right from the beginning.

Except for media and pharma sectors, all others concluded the day with gains, with banking and energy stocks emerging as the top performers.

However, mid and smallcap indices underperformed as buying was concentrated to index-based stocks, Bhojane said.

On the daily chart, the Nifty sustained its upward momentum after a gap-up opening of 300 points, forming a robust bullish candle indicative of a strong uptrend.

However, a closer examination of lower time frames, particularly the hourly charts, revealed an overbought condition. A correction, either in terms of time or price, seems warranted, suggesting that one should consider entering positions on dips for a more favorable risk-reward profile, Bhojane added.