Capping the gains was a nearly 4 per cent fall in market heavyweight ITC. In a bid to curb tobacco consumption, the health ministry has proposed changes in tobacco regulation, including ban on sale of loose cigarette sticks and stricter advertising norms.
Market analyst Rajat Bose says Nifty faces strong resistance at 8330 to 8365 levels while it has support at 8265 levels.
Also weighing on markets were metal stocks which were under pressure amid a slump in global commodity prices. The BSE metal index fell 1.8 per cent with Sesa Sterlite, Hindalco and Tata Steel down 2-3 per cent.