Markets end at new 17-month high; SBI, DLF, RIL, ICICI Bk lead

The Sensex closed at a new 17-month high and gained 127 points after seeing consolidation on Thursday. Banking, realty, telecom and private power companies' shares helped the markets; wherein Reliance Industries, SBI, DLF, TCS and ICICI Bank led the rally with 2.2%, 5%, 6%, 3% and 2.5% gain respectively. European cues were also supportive.

However, metal, FMCG, oil marketing, cement, select technology and pharma stocks witnessed selling pressure and capped the gains. Sterlite Industries was the major loser with 5.5% loss.

The 30-share BSE Sensex gained 127.62 points or 0.74%, to settle at 17,322.82 and the 50-share NSE Nifty rose 0.65% or 33.30 points to 5,142.15. The Nifty futures saw very low volumes, which dropped nearly 40% while action continued in stock futures; DLF shot up 6% with 13% rise in Open Interest and SBI gained 5% with 30% jump in Open Interest. The benchmark indices gained 4% each this week.

Mitesh Thacker, Technical Analyst of miteshthacker.com said tomorrow if we have a good session we will be able to cross 5,150 level on the Nifty. "The slightly medium term target has been 5240-5250 on the upside that is a very significant and strong supply area."

The market will remain opened for one hour from 6:15 to 7.15 pm on Saturday on Samvat 2066.

Investment Guru Rakesh Jhunjhunwala sees the Nifty trading in a 4,200-4,000 to 5,800-6,200 range next year. "It will be somewhere near its pervious top." However, he was quick to caution that breaking 6,100-6,200 on the Nifty and holding on to it is not going to be an easy task. "If you price in 2011-12 index earnings, which you would do by December 2010, then it could."