Benchmark indices hit record all-time high led by gains in capital goods, oil & gas, realty and power sectors as foreign institutional investors continued to pump in dollars on hopes of a reformist budget. The indices are likely to move higher in the trade taking cues from supportive Asian markets as well.

At 09:50 a.m.; the 50-share index was at 7,637.80, up 54.40 points or 0.71 per cent. It touched an all-time intraday high of 7,648.25 and a low of 7,580.25 in trade today.

The Nifty has provided a nice break-out last week and it seems that the index has started its wave III up of wave 5, which was anticipated.

"Nifty has also started to form higher tops and bottoms which is quite a positive sign for bulls going forward. On the lower side, the previous swing's high of 7391 is very crucial and below that the swing's low of 7360 is also important for short-term positional traders," Sharekhan said in a note.

"That is because if and only if these levels are broken, will the trend be considered to have reversed as below these levels the Nifty will violate the Dow theory pattern," he added.

Based on these evidences, the brokerage firm maintains their short-term bias up for a target of 7700, i.e. the upper end of the rising channel.