The benchmark indices ended on a very strong note ahead of the F&O May expiry, led by the positive cues from the US and the Asian region after US consumer confidence jumped to its highest level since September. The Sensex finished at 14,110 up 520 points, after trading between 14,122 and 13,780. The Nifty rose 3.8 % to close at 4,276 up 159 points, after trading between 4,286-4,189. Among the broader indices - the BSE smallcap index surged 3.4 % and the CNX midcap index gained 3.2 %. All sectoral indices on the BSE ended in the positive terrain. Buying was seen in realty, banking, metal, infrastructure and technology stocks. While textile stocks surged in the midcap space.

The Indian benchmark indices witnessed a spectacular rally after the US consumer confidence index increased to 54.9 in May from 40.8 in April, as against expectation of
42. It was highest since September 2008. The markets also gained strength after the comments from the country's finance minister, Pranab Mukherjee in his first official press conference, that he would focus on infrastructure in the Budget and would also address long-pending reforms for the financial sector.

There was fresh buying and huge short-covering across the board since the morning session as the markets haven't shown any sign of weakness in today's trade. Reality, infrastructure, banking, metals and textile stocks were in major limelight.

Yesterday we had mentioned that technically there is no sign that markets are topping out and we had also mentioned that if Nifty sustains above 4160 then a major action could be seen.

For tomorrow if Nifty maintains above 4320 level, then once again we could witness huge buying interest in the frontline stocks and we could see the May expiry around 4360-4400 region. On the lower side 4215 should act as a very strong support area for intra-day.