The Nifty and the Sensex closed marginally in the green on Monday. The Nifty closed at 5,717, up 33 points, while the Sensex closed at 18,793, up 111 points.
Dealers said that stock specific action would continue based on the second quarter corporate earnings.
"Markets continued to consolidate as participants remained cautious ahead of the F&O expiry on Thursday. A lot of action can be expected in the interest rate sensitive stocks in the coming days ahead of the RBI policy meet which is scheduled on October 30. Furthermore, a holiday-truncated week will keep traders and investors on tenterhooks," said Amar Ambani, Head of Research, IIFL.
Volatility was down 10.3 per cent and the India Vix closed at 13.04.
JP Associates, L&T, TCS, NTPC and Bharti Airtel were the top five Nifty gainers, while Bank of Baroda, Jindal Steel, Hero Motocorp, ITC and Ambuja Cement were the top losers.