Mumbai, April 19 : Indian benchmark indices wrapped up the week on a strong recovery by surging over 4.5 per cent -- driven by positive signals from both domestic and global factors, experts said on Saturday.

The benchmark indices opened with significant gains and continued to build momentum throughout the week.

As the week ended, both the Nifty and Sensex closed near their highs at 23,851.65 and 78,553.20, respectively.

'The Nifty index has been trading within a range of 21,700'23,800 for the past couple of months and has now reached the higher end of this range. It has also reclaimed important moving averages -- the 100 and 200-day EMAs,' said Ajit Mishra - SVP, Research, Religare Broking Limited.

'As the positive momentum continues, there is potential for the index to target the 24,250'24,600 zone in the coming weeks,' he added.

Banking stocks were the standout performers, rallying due to easing retail inflation data and a favourable monsoon forecast.

This fuelled optimism about potential rate cuts by the Reserve Bank of India (RBI). The positive sentiment was further boosted by optimism surrounding deferrals of tariffs and exemptions for select products, raising hopes that trade tensions might ease in the future.

There were no major negative surprises from global markets, which also helped sustain the bullish sentiment. These developments helped to support the rally throughout the week.

'The decline in the volatility index (India VIX) also signals a reduction in market uncertainty after a period of recent volatility,' Mishra mentioned.

'Looking ahead, the current recovery trend seems likely to continue. A 'buy on dips' strategy is recommended as long as the Nifty stays above the 23,000 mark,' he added.

According to Bajaj Broking Research report, volatility is expected to remain elevated amid tariff-related development and the progress of the Q4 earnings season.

'Dips if any in the coming week should be used as buying opportunity with key support placed at 23,200 levels,' the report said.

/IANS