The surpassing of the 5000-mark is a strong bullish sign. The outlook is extremely bullish, and gains are not ruled out. The index has made a strong base at 4,654 points. Even the medium-term investors can use this level as a benchmark. This level should not be seen in the near future.

For individual stocks, HLL failed to show any rally. In fact, on Friday, it lost five per cent. In fact, it was HLL which prevented the Sensex from showing a close above 5000-mark. A correction at Reliance and Infosys counter on Friday also provided some correction in the Sensex.

As for rest of the Sensex-based stocks, the closing has been extremely bullish. SBI has crossed all its medium-term resistance levels, and is heading towards the next hurdle of Rs 256. ITC showed a rally but it was more of a technical correction.

Chances of it sustaining the move are unlikely. While Reliance showed a correction on Friday, the medium term trend is still positive for the stock. The latest rally has taken the stocks like Bhel, MTNL and HPCL close to their medium term resistance levels. Bhel should face a hurdle at Rs 320. For MTNL, the level of 212 would provide some resistance. And for HPCL, the resistance level is at Rs 280.

As for Ranbaxy Lab, it has managed to cross all its short-term hurdles, and the northward journey is likely to be smooth in the near future as it is in a virgin terrritory once again. The position of Castrol, however, is far from impressive, and a downtrend is likely in the near future.

For Tata, the position is improving steadily. ACC has crossed the medium term resistance of Rs 212, and chances of a higher bottom are great. As for Telco, higher bottom is crucial for a improved performance. Tisco is comparatively better, and will have a hurdle only at Rs 175 which is still far from the current price.

Tata Tea continues to remain strong, and any upward rally should not come as a big surprise. For the software stocks, the outlook remains bright. NIIT, Pentafour Software, Silverline, Global Tele, Himachal Futuristic, Tata Elxsi and Aptech Infosys are expected to gain further.

Among the others where a positive move is likely are Balrampur Chini, BPCL, Ceat, Cromp. Greaves, Finolex and Ranbaxy. However, counters like Bajaj Auto, BASF, Bombay Dyeing, BSES, Castroland Escorts. may show a weak trend.