Nifty may move in the range of 5,220 and 5,395

The Asian indices opened cautiously and the domestic indices too were range bound for the major part of the trading session. However, in the last hour, the indices pushed higher extending the significant rally that started in late December. Today Nifty hit the highest intra day high since 31 October 2011.   From here we may see the Nifty moving in the range of 5,220 and 5,395.The National Stock Exchange  (NSE) saw a volume of 81.24 crore shares.

At the end of the session the Asian market were a mixed bag ahead of key US jobs data which will be out later today, which will offer more clues over the global growth and appetite for risk, while Greek debt restructuring talks dragged on.

The Sensex and the Nifty opened at 17,444 and 5,276 respectively. In the morning range bound session the respective indices hit their intra- day low at 17,383 and 5,256. Last hour of the trading session saw a huge jump taking the benchmarks to intra-day highs of 17,631 and 5,335. The Sensex closed at 17605, 173 points up (0.99%) while Nifty closed at 5326, 56 points up (1.06%). Both the Sensex and the Nifty had the highest closing since 31 October 2011. The advance-decline ratio on the NSE was 1115:655.

Among the broader indices, the BSE Mid-cap index surged 1.28% and the BSE Small-cap index climbed 1.17%.

The BSE Metal index (down 1.09%) was the lone loser in the BSE sectoral indices today. While all the other 12 sectoral indices gained, BSE Realty topped with gainers (up 2.15%). The others gainers among the top five were, BSE Healthcare (up 1.69%), BSE Power(up 1.49%), BSE FMCG(up 1.44%) and BSE Bankex(up 1.42%)

In the 30-share Sensex pack, 24 stocks gained while six fell. Among the top five gainers, NTPC (up 2.71%); Hindustan Unilever (up 2.69%); Sun Pharmaceutical (up 2.38%); DLF (up 1.97%); BHEL (up 1.93%). While the bottom five losers were Hindalco Industries (down 3.08%); Jindal Steel (down 2.66%); Tata Steel (down 1.56%); Sterlite Industries (down 0.97%); Hero MotoCorp (down 0.69%).

India's services sector grew at its fastest pace in six months during January as new businesses swelled, extending the previous couple of months' positive trend into the new calendar year, a survey showed.

The HSBC Business Activity Index, compiled by Markit and based on a survey of around 400 firms, bounced to 58.0 in January from 54.2 in December.

That was the third month the index has been above the 50-mark separating growth from contraction.

India's economy is expected to grow by 7 to 7.5 percent in the current fiscal year ending March, Prime Minister Manmohan Singh said in a speech on Friday. Gross domestic product grew 8.4 percent in the year tosince March 2011.

Reserve Bank of India Deputy Governor Subir Gokarn said the monetary authority will cut interest rates once it i's confident that inflation will keep slowing.

European was trading in green on the back of encouraging macroeconomic data in the euro zone and the UK. The data on Friday showed that the euro zone's private sector economy snapped a four-month decline in January and expanded, although very weakly,. aAccording to a  business survey  that hinted the euro zone may avoid recession. Britain's dominant services sector expanded at the fastest pace in 10 months in January. Investors have become more confident of a debt swap deal involving Greece and its private sector creditors, and that the country can avoid a disastrous default.

Back home, Bajaj Hindusthan, today said it has fully repaid external commercial borrowings (ECB) worth $80 million (about Rs389 crore). The ECB of 9.191 billion yen in form of syndicated term loan facility, which was raised in 2006-07, for the purpose of financing the capital expenditure, has been repaid in full on its due date 27 January 2012, upon completion of its average maturity of 5 years. Bajaj Hindusthan rose 1.85% to close at Rs35.70 on the BSE.

Madras Cements today reported a 77% rise in net profit for the quarter ended December to Rs76.84 crore on the back of higher sales. Net sales of the company also increased to Rs741 crore during the October-December quarter of the current fiscal from Rs579.21 crore in the same quarter last fiscal. Madras Cements rose 3.48% to close at Rs129.40 on the BSE.