Strong fund based buying helped the Sensex closed above the 17,000 mark for the first time since May 21, 2008. The benchmark index advanced 274 points to close at 17,127 and the Nifty gained 77 points to end at 5,084 after it touched an intraday high of 5,087 and a low of 5,004. Huge buying in banking, auto, metals and cap goods stocks led the markets higher. The market breadth was positive throughout the session and the total turnover was at Rs 82,231 cr.

Markets ended on a strong note as the Sensex managed to close above the 17K mark on huge Institutional buying interest witnessed in banking and capital good stocks. Currently markets are in an overstretched stage but the under current is very well? built. The momentum in high and one should participate along with the trend. We don't see any kind of weakness prevailing in the market as they are well positioned above their strong support levels of 4,900/16,500. Unless we see a break below this level this uptrend is safe and every fall is a buying opportunity.

For tomorrow, Nifty has strong support at 5,010-4,980 levels and resistance is placed at 5,150. Technically we see this current momentum heading towards the 5,210/17,550 levels shortly from where we could witness some decent profit taking happening. Capital Goods and Oil & gas sector is currently showing strong relative strength and we believe that these could outperform in coming days.

STOCK IDEA:

1) BHEL (2329) - Buy and hold with a stop? loss of 2280, if the stock maintains above 2360 with good volume then expect a target of 2490 shortly.

2) DLF (438) - Buy and hold with a stop? loss of 418, counter showing strong sign of revival, if maintains above 450 then look for a target of 475?510 in the near term.

3) LT (1689) - Buy and hold with a stop? loss of 1665?1630, strong resistance at 1700, if maintains above 1700 then expect a target of 1790?1910.

4) M&M (883) - Structure looks very positive, buy with a stop? loss of 845, resistance at 910, if maintains above then look for a target of 930?980 shortly.

NIFTY DAILY CHART: Nifty is still trading above its trend? line support of 4,960 as shown below. Unless we see a break below this point with huge volume we don't see any threat to this current uptrend. On the higher side 5,020?5,030 has to be crossed and sustained by Nifty future to gain fresh momentum. If Nifty maintains above 5020 for some time then we are looking for a big breakout of almost 5? 7% from current levels in coming days. The current trend is very strong and positive.