Domestic markets clocked respectable gains on Monday, buoyed by strong cues from world-wide markets and on signals that fundamentals of the global economy are continuing to improve. Also, investor sentiments elevated on comments from government that the economy will expand by 6-7% in the current fiscal despite facing poor monsoon and droughts in some of the states. For the second straight session, volatility failed to venture into the trading arena, making the job easier for benchmark indices to move pass their psychological levels and more importantly to hold on to that levels. While buying activity looked imposing at higher level, marketmen had an equal tempt for components of broader indices. Sectorwise, realty, auto and metal played a key role in helping markets prolong their winning streak. In fact, all other sectors contributed their part in the upmove, barring export-driven software firms that suffered after the rupee rose to its strongest against the dollar in nearly a month. Finally, the 30-share BSE Sensex added 183.68 points or 1.09% to end at 17,032.51, while the S&P CNX Nifty surged 59.1 points or 1.18% to settle at 5058.05.

The US markets continued their rally mood on Monday and the all the major indices advanced by more than 1% to new 13-month highs. The stocks moved up on the news of rebound in retail sales in October and weaker dollar. The other factor that boosted the morale of the investors was the Federal Reserve Chairman Ben Bernanke reaffirmation that the central bank would hold interest rates at record-low levels for an 'extended period'. The Dow Jones Industrial Average surged by 136.49 points, or 1.33%, to 10,406.96.The broader S&P 500 index added15.82 points, or 1.45%, to 1,109.30.The index first finished above 1,100 more than a decade ago, in March 1998. The Nasdaq composite index was up by 29.97 points, or 1.38%, to 2,197.85.

Crude prices bounced back on Monday after hitting their one month low in previous trading. The crude prices took encouragement from the report showing retail sales rebounded more than expected in October, because of a boost in auto sales. The weakness in dollar also supported the crude prices. Benchmark crude for December delivery rose $2.55 to settle at $78.90 a barrel on the New York Mercantile Exchange. In London, Brent crude for December delivery rose $2.45 to settle at $78.76 on the ICE Futures exchange.

The Indian rupee gathered some more strength on Monday; the rupee once went to 46 touching its high since October 20 but dollar demand from importers limited a further rise and the partially convertible rupee lost some of its early gains afterwards. The rupee closed at 46.22,10 paise stronger compared to its Friday's close of 46.32. The rise in the currency was well supported by the continued rally in the local stock markets and the decline in dollar against other major currencies.

The FII on Monday were the net buyers in both equity as well as debt segments. In equity segment the gross buying was of Rs 2271.90 crore against gross sell of Rs 1600.10 crore, while in the debt segment the gross purchase was of Rs 780.70 crore with gross sales of Rs 430.40 crore.

The US markets continued their upmove on the news of rebound in retail sales and assurance by Fed chief that the interest rates will remain at low levels. The Asian markets have made a mixed opening and barring Chinese market most of the indices are trading in red. The cue for the domestic markets remains of a cautious opening as the indices have shown continuous gains and investors might take the opportunity to book profit at higher levels.

Support and Resistance: S&P CNX Nifty and BSE Sensex

                                                             Nifty Top volumes

• Suzlon Wind Energy Corporation, a step-down subsidiary of Suzlon Energy has bagged an order for the community-based grant county wind farm.
• Unitech Wireless is expected to roll out its mobile services before Christmas.
• PVR has finally announced the acquisition of DLF Group's non-core business DT Cinemas.
• Reliance Communications has launched its value-added service 'mVDO', which will allow its mobile subscribers watch, share, search and upload videos online.
• Idea Cellular has started GPRS service for its customers on its 2.75G network over Kolkata.

The company has inked a Memorandum of Understanding (MoU) wi...