It was a very strong session for the markets as they ended at a new 2009 high. Positive global cues and higher advance tax numbers lifted investor sentiments. Realty, metal, auto and banking stocks led today's rally. The Sensex closed at 16,454 up 240 points after hitting a new high of 16,477 and the Nifty was up 83 points at 4,892 after making a new high of 4,899. The broader indices also participated in the rally ? the BSE Midcap Index was up 1.83% and Smallcap up 1.33%. The market breadth was positive and the total traded turnover was at Rs 90,254 cr. as against Rs 77,045 cr.

Markets have broken the higher band today and hit a new 2009 high of 4,899 & 16,477. The trend continues to remain Up and very strong as markets are lacking any huge selling from the FIIs or the domestic players. We were looking for a fresh trigger and one of the triggers that started today is the advance tax numbers and the second could be the earnings estimates for this quarter in coming days.

Banking, metal and auto stocks continue to show strong resilience and can be bought on dips. Markets are in a strong uptrend and unless we see a major break below 4,780 we don't see the rally getting blocked. On the higher side if Nifty breaks 4,930 with huge volumes then 4,980 ? 5,040 is the immediate target.

STOCK IDEA:

1)  AREVA T&D (316) – Buy, huge delivery volume witnessed, counter  is showing sign of revival,  if maintains above 310?295 then look for a short term target of 340?375.

2)  BRFL (222) – Buy with a longer time horizon, huge delivery volume witnessed, the stock has been consolidating between 218?200 for quite some time and today it has closed above the trading band. Strong support is at 208, in the short term  target looks 245.

3)  KOTAL BANK (749) – Buy with a stop?loss of 720, structure looks very positive, if maintains above 760 then look for a target of 815?870.

4)  WELSPUN GUJ  (256) – Buy and hold with a stop?loss of 242, stock  is  in  the edge of giving a breakout above 258,  in the short term target looks 275.

NIFTY FUTURE DAILY CHART: The  trend  continues  to  remain Up but  from a very  shorter  term  retracement 4,780  remains a very strong  support area. Unless Nifty breaks  this point we don’t  see any weakness entering  into  the  system. The upside continues  to remain  intact. On the higher side 4,935  is the 50% retracement area,  if nifty maintains above and consolidates for some time then next level is 5,260 in the medium term as shown below.