MUMBAI: Markets are likely to move in a range as investor participation is expected to gradually decline globally ahead of Christmas and New Year holiday, Siddhartha Khemka, Head of Retail Research at Motilal Oswal Financial Services, said on Thursday.

Nifty recovered smartly from lower levels on Thursday following rebound in global markets and closed with gains of 105 points (up 0.5 per cent) at 21,255 levels, while the Sensex gained 358.79 points (0.51 per cent) to close at 70,865.

The broader market outperformed with Nifty Midcap 100 and Smallcap 100 up more than 1.5 per cent each, Khemka said.

All sectors ended in green with oil & gas, PSU bank and metals being the top gainers. Niche sector like defence was in focus after companies received order from the government. Though the market saw profit booking on Wednesday, the underlying sentiments remain positive given the robust micro and macro domestic factors, he said.

Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities, said Nifty recently demonstrated resilience, rebounding strongly from a critical support level at 21,000, affirming a bullish sentiment.

The index closed above its 10-day moving average, signaling positive momentum. Key levels to monitor include 21,000 as immediate support and 21,300 as the initial resistance.