The benchmark indices ended on a strong note after two days of profit booking. This sharp rally was despite the weak IIP data, which came in at ?2.3% for March. Fresh buying and huge short? covering was witnessed across the board. Technology, banking, realty, telecom and infrastructure stocks supported today's rally.

The Sensex surged 475 points and touched an intraday high of 12,194 before closing at
12,158 up 4.07%. The Nifty ended 3.56% or 126 points higher at 3681 after hitting day's high of 3691. Among the broader indices ? the midcap and smallcap indices on Bse were up 0.94 % and 1.32 %.

Today's closing was unexpected and ended on a strong note with nifty closing above the important level of 3615. If we look at today's momentum it suggests that Nifty is headed for a sharp move, ahead of the election results next week. Now the next hurdle for spot nifty is at 3717and for the future nifty at 3729. This is a crucial zone and we don't advice traders to be more aggressive in building positions at higher levels.

There is a possibility that if nifty sustains above 3717 then the next leg could be towards 3860?3975 in coming days. The outlook for the coming week is cautious and one should wait for the markets to settle down and then re? enter. For intra? day support is placed at 3615 and resistance at 3720 and if nifty sustains above the 3720 mark then we could witness more momentum on the higher side.

We could see profit? booking at higher levels, so short? term players should wait for the dips to re? enter and speculative traders can go long on nifty with a stop? loss of 3660?3615 depending on the market condition. Around this region we believe that players should go with defensive stocks rather then high beta as we may see high volatility.