Bulls were back at Dalal Street on Monday as the domestic equity indices settled sharply higher, thanks to a host of positive global and domestic cues. After a severe sell-off on Friday, bulls were back at Dalal Street on Monday as the domestic equity indices settled sharply higher, thanks to a host of positive global and domestic cues. Allround buying across the sectors has pushed the headline indices up by 4 per cent in the last one month. For the day, the 30-share pack BSE Sensex surged 709.96 points, or 1.16 per cent, to close at 61,764.25, while NSE's Nifty50 rallied 195.40 points, or 1.08 per cent, to 18,264.40. Broader markets were also up about a per cent each, while Fear gauge India VIX spiked up about 3 per cent to 12.64-level. Markets started the week on a buoyant note and gained nearly a percent. Firm global cues triggered an upbeat start, which further strengthened with buying in select heavyweights as the session progressed. Consequently, Nifty settled closer to the day’s high at 18,271 levels, said Ajit Mishra, VP - Technical Research, Religare Broking. "Participants are experiencing a roller coaster ride in the index for the last 3 sessions however the overall bullish tone is somehow capping the damage. We feel traders should continue with a cautious approach until we see some stability for a session or two. Meanwhile, stick with a stock-specific trading approach and limit leveraged positions," he said. Here are the key factors that drove the rally at Dalal Street on Monday:1. Global markets Majority of the global markets were trading higher on Monday. Asian stocks settled about a per cent higher on Monday, whereas European markets were also up in the early trading hours. Dow Futures at the close of India's trading session were up, suggesting optimism to continue in the US stocks.2. US stock market Wall Street's main indexes gained on Friday as a stronger-than-expected jobs report eased fears of an imminent economic downturn. "Cues from the mother market of the US indicate that the fears from the regional banking crisis are receding. The April US jobs data, which came at a much better-than-expected 2,53,000 jobs reflect a strong economy which may even avoid a recession," said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.3. Apple Results Upbeat Apple results supports the market sentiments further. Apple Inc gained 4.4 per cent on better-than-expected results, helped by strong iPhone sales and notable inroads in India and other newer markets, fuelling a near 2 per cent advance in technology stocks.4. FIIs buying As the US Federal Reserve hinted towards a pause in the rate hike cycle, overseas investors are pumping dollars into Dalal Street. FIIs have remained net buyers of the Indian equities in the month of May. "FIIs have been continuous buyers in India during the last seven trading sessions, cumulatively buying equity worth Rs 11700 crores. Rupee appreciation is aiding FII buying," VK Vijaykumar said.5. Crude Oil prices Despite a rise in crude oil on Monday, the global commodity has remained under pressure recently on the back of recession fears. Brent had finished last week with a decline of about 5.3 per cent while US crude plunged by 7.1 per cent even after Friday's rebound. Both benchmarks were down for three weeks in a row for the first time since November.6. Softening of the US dollar The dollar began the week under pressure on Monday, with traders betting it might have peaked along with US interest rates while keeping a wary eye on looming inflation and loans data. The dollar index , which tracks the unit against six major peers, was down 0.2 per cent at 101.11. Last month's 100.78 was its lowest in a year. Last week the Fed raised rates by 25 basis points but sounded slightly more cautious than peers on the outlook, dropping guidance about the need for future hikes.7. US Jobs data US job growth accelerated in April while wage gains increased solidly, pointing to persistent labor market strength that could compel the Federal Reserve to keep interest rates higher for longer as it fights to bring inflation under control. The Labor Department's closely watched employment report on Friday also showed the unemployment rate falling back to a 53-year low of 3.4 per cent. Though data for February and March were revised sharply lower, the labor market is slowing only marginally.8. Upbeat Q4 earnings India Inc's earnings for the March 2023 quarter has majorly been in-line with the expectations, with no major accidents, said analysts. The upbeat performance from the financial and auto stocks is leading the rally, they said. Profits of the 26 Nifty companies that have declared results so far have risen 10 per cent YoY (better than estimates), fueled by financials. Excluding financials, profits would have declined 1 per cent YoY, Further, Nifty profits would have increased 22 per cent YoY, excluding Metals and Oil & Gas, said Motilal Oswal.9. Buying in Heavyweights Buying in index heavyweights supports the markets sentiments. From Reliance Industries to beatdown HDFC Twins and Bajaj Twins support the market sentiments. Even the broader markets were high on spirits as the advancers outnumbered the decliners during the session. Benchmark Indices commenced the week on a strong note rising over a percentage with heavyweights led by Reliance, Bajaj Twins & HDFC Twins even as other biggies in the Banking space contributed their bit, said S Ranganathan, Head of Research at LKP securities. "Market Breadth during the day was largely good as evident in the advance-decline ratio" he said.10. Technical Outlook While the undertone continued to remain bullish, the upbeat US market close last Friday further buoyed the local market sentiment. Hopes of interest rate hike cycle reaching its peak and banking woes in the US receding, investors latched upon rate-sensitive stocks of banking, automobile and realty as strong monthly sales numbers are pointing towards a decent recovery, said Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities. "The index successfully cleared the short term resistance of 18,200 which is broadly positive. On daily charts, the index has formed a bullish candle and currently it is comfortably trading above the 18,200 level, which would be the sacrosanct support level. Above the same, the index could move up till 18,350-18,400, while on the flip side below 18200, the uptrend would be vulnerable," he said.