Nifty ends above 5000, weekly gain over 7 per cent

The Sensex staged a stunning performance for the second consecutive session on Friday, shooting up 363.38 points in late trade. The sharp move was in anticipation that the European Union summit would have positive outcome. Over the week, the market posted one of the biggest rallies in 2011, rising over 7%.

Today, the Sensex gained as much as 405 points in intra-day trade, before closing at 16,846.83. Meanwhile, the Nifty jumped 113.30 points, to end at 5,050 level - at more than two-week high.

Mithil Pradhan of Violet Arch Capital Advisors is bullish on the market post violation of 4,765. He is expecting the Nifty to touch about 5,300 level.

Hopes of likely resolution to the European debt crisis has been increased, especially after global central banks' move to increase liquidity. The central banks cut the cost of borrowing dollars by 50 basis points coupled with China's cut of reserve requirement ratio by 50 basis points on Wednesday.

Shane Oliver, head investment strategy and chief economist, AMP Capital Investors says, ''We are getting closer to the end point in Europe. The point where there will be some sort of resolution.''  France's CAC, Germany's DAX and Britain's FTSE rose 1.7% each. The Dow Jones futures gained 132 points, pointing a positive opening today.

In India, Oliver says, the valuations have probably come back to a more reasonable level. However, he says, the next couple of months can still remain quite volatile.