The rally continues for the seventh consecutive day on positive global cues. The index hit a new year high of 4,743 during today's session as buying was seen in selective frontline stocks which helped Indian markets to keep the momentum going. The Sensex shut at 15,922 up
141 points after seeing an intraday high of 15,957 and low of 15,663. The Nifty settled at 4732 up 0.94% or 44 points. It touched a day's high/low of 4743 and 4651, respectively. Reality, auto, banking and capital goods stocks witnessed strong buying interest. For the week, both the Sensex and the Nifty closed up nearly 4.5 % each. The BSE realty index jumped 10 % and the IT index rose 7.8 %.

The Sept series opened at 35613 cr. as against 33460 cr. last month. Finally nifty today managed to hit a new year high on select buying in the frontline stocks and also the global cues helped the Indian market to keep the momentum going strong.

In today's session we have witnessed strong buying in Index pivotal like Reliance Ind and State Bank of India. Going forward if these two stocks continue to keep the momentum going then we believe that there is a higher probability that nifty could touch 4870?4965 shortly.

It's very important that nifty should sustain this new zone of 4700 for some more time before heading for a fresh breakout. For the short term strong support is placed in the region of 4680?4650?4610 area and in the medium term support for nifty exit at 4550?4480 regions. Unless these levels get breached we don't see weakness prevailing into the system. Till then every fall is a buying opportunity.

STOCK IDEA:

1) DLF (413): Buy on dip with a trading stop? loss of 370 for a target of 430?450. Technical oscillators suggesting a buy signal.

2) JPASSOCIATE (230.50): Buy on dip with a trading stop? loss of 217?214, counter has formed a strong base around the 214 region, if the counter maintains above 220 then look for a target of 250?265.

3) RELINFRA (1169): Buy on dip and hold with a stop? loss of 1105, stock has been consolidating at lot and has not participated in this rally, if the stock maintains above
1170 then look for a target of 1240?1310.

NIFTY FUTURE DAILY CHART: The trend continue to remain very strong as momentum is seen in the strong index pivotal stocks like Reliance, SBI. The only concern is that this rally continued for the seventh consecutive day and the very short term trend is slightly overbought. So we believe that markets should consolidate a bit before heading for a big breakout. Short term target looks 4770?4830 and support is at 4615?4550 region, unless nifty breaks this level the trend remains intact. Every fall should be used as a buying opportunity.