The benchmark indices continued its upward momentum on strong Asian & European cues. The Sensex gained 215 points to finish at 14,840, its highest close since September 09. The Nifty ended at 4,530 levels up 81 points. Among the broader indices ? the BSE midcap index rose 2.9 % and the BSE smallcap index surged 3.5 %. Buying was seen in technology, metals, reality, FMCG stocks led the gains today. The June Future ended with a 10 points premium.

The global markets reacted very strongly on the China's manufacturing data which signaled the worst of the global recession may be ending. Stocks climbed, sending the MSCI World Index to the highest level since November. Stocks and commodities market's rallied while treasuries declined. Buying is witnessed in all the asset classes.

The outlook still remains optimistic, but one has to cautious at higher levels as the markets are overstretched and highly overbought. Markets have to correct and consolidate before giving a fresh breakout on the higher side. The longer tern view is very positive but in the near term we believe that the upside in capped.

For tomorrow's trading support for nifty is at 4480 and resistance is placed at 4620. We advice traders not to get carried away on higher side and play safe, buying at lower level is sensible with appropriate stop? loss. We like Cement, Auto, Shipping and technology stocks, which can be bought on dip.