Mumbai, Dec 4 (IANS): Nifty has rallied by 1,865 points or 10 per cent from its low of 18,837 recorded in October, said Siddhartha Khemka, Head of Retail Research at Motilal Oswal Financial Services.

Indian equities celebrated BJP's sweeping victory in three states by rallying more than 400 points to hit a fresh high of 20,702 on Monday.

Nifty opened gap up and saw a one side movement to close with gains of 419 points (+2 per cent) at 20,689 levels, Khemka said.

All the sectors ended in green, barring pharma. Oil & gas, banking and financials were the top gainers, up 3 per cent each. The government related sectors like Infra, capital goods, power, railways, defence and PSU stocks were in momentum on Monday.

The election outcomes overwhelmingly in favour of the incumbent BJP, strong macroeconomic data and easing global interest rate expectations boosted the market momentum, Khemka said.

Rupak De, Senior Technical Analyst at LKP Securities, said that Nifty kicked off with a gap up, propelled by BJP's exceptional performance in the state elections.

Technically, Nifty had already surged past the critical resistance level of 19,850. Since then, there has been a significant shift in Put positions towards higher strike prices, foreseeing a robust upward rally in the near future. The overall sentiment appears highly bullish, until Nifty falls below 20,400. On the higher end, the index might move towards 21,000.