P.K. Agarwal, president - research, Bonanza Portfolio, said funds pumped-in by central bankers, globally resulted in a sharp pull back rally in world markets. Supported by global cues, Indian markets opened strong.

Nifty gained more strength as the day progressed. It touched a high of 4,262 and closed near the high at 4,245.

Banking, IT, Capital Goods sectors, Satyam Computers, ICICI Bank, HDFC, Tata Power led the Bull charge. However, weakness was seen in Hero Honda, BPCL and SBI.

Resistance is likely near 4,335 levels on upside. Support is likely to be near 4,100 levels.

Traders may hold long positions with strict stop-losses.

Alex Mathew, head, research centre -Geojit Financial Services said ``Market watchdogs across the globe who were under pressure due to financial market turmoil on credit crunch, have finally taken action against short sellers.

The first move came from the Russian regulators, later US, UK, Chinese regulators have taken various steps to boost investors confidence which has led smart recoveries in financial stocks across the globe.

On the back drop, Nifty has finally crossed the key resistance at 4,169 (10 day exponential moving average) and likely to break 4,400 mark very soon. Short covering and fresh buying from domestic and retail sector was evident and many small and medium stocks participated in today`s rally.

PSU  banking sector has taken a good breadth after yesterday`s movements and is really pumped up for another round of uptrend. ICICI Bank, HDFC Bank, Infosys and Satyam gained sharply on expectation of firm outlook of NASDAQ. Rupee is looking strong and is targeting towards 45.35.

``Nifty has support at 4,100 and has a target of 4,400. Reliance and ONGC are the stocks which can lead the rally in the short run``, he said.

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