Benchmark indices extended their gains for the third consecutive session on Monday, supported by a strong late recovery. Nifty rebounded sharply from early losses amid improving sentiment driven by optimism over a potential Iran–US ceasefire.At the close, Sensex advanced by 787.30 points, or 1.07 per cent, to 74,106.85, while Nifty gained 255.15 points, or 1.12 per cent, to settle at 22,968.25.Sector-wise, Banking, Financials, Consumer Durables, and Realty stocks led the rally, each posting gains of over 2 percent. Metals, Auto, and FMCG sectors also ended higher with gains of around 1 per cent. IT stocks recorded moderate gains, while the Media sector remained largely flat. Oil & Gas stocks underperformed, declining by 1.37 per cent, outlines Bajaj Broking Market Commentary.In terms of the Nifty outlook, the index formed a bullish candlestick pattern with a higher high and a higher low signaling continuation of the pullback from the extreme oversold territory. Index in the process moved above its previous week high 22941 for the first time in last 8 weeks.Volatility is expected to remain elevated in the near term, driven by geopolitical tensions and firm crude oil prices, which continue to weigh on overall market sentiment.Going ahead a follow through strength above Monday’s high 23,000 will open further upside towards 23,450 levels in the coming sessions. Failure to move above last week high will signal some consolidation in the range of 22,200-23,000 levels. While a breach below last week panic low of 22,182 will open further downside towards the key support area of 22,000-21,800.Key short-term support is placed at 22,000–21,800 zone being the trendline support joining last two-year lows and the 200 weeks EMA. For any meaningful pause in the ongoing downtrend, the index needs to form a sequence of higher highs and higher lows on the daily chart, along with a sustained close above 23,465.