Indian markets were witnessing a pull-back rally in line with other global peers after the US Federal Reserve decided to keep the interest rates unchanged near zero for two more years. According to analysts, the relief rally may not last long and the indices may see a technical correction.

"The intermediate trend still looks very bearish and any pullback should be used to cut positions or go short. On the higher side Nifty future will face resistance at 5240- 5270 levels and stability above this point might extend the rally up to 5330 - 5370 levels in the near term. Lower side support seen at 5018 and trade below could again weaken the trend.

For Sensex @ 16857, strong support exits at 16440 and only break of this point could again trigger for a big fall, till then any dip is a buying opportunity. Resistance seen at 17300 levels and only stability above this level could further extend the rally," said Nirmal Bang report.

At 10:15 am; National Stock Exchange's Nifty was at 5169.30, up 96.45 points or 1.90 per cent. The broader index touched a high of 5197.95 and low of 5146.15 in trade so far.

Bombay Stock Exchange's Sensex was at 17171.03, up 313.12 points or 1.86 per cent. The 30-share index touched intraday low of 17093.63 and high of 17256.45.

BSE Midcap Index was up 2.26 per cent and BSE Smallcap Index gained 2.81 per cent.

All the sectoral indices were in the positive terrain. BSE IT Index gained 3.41 per cent, BSE Realty Index moved 3.20 per cent and BSE Auto Index was up 2.63 per cent.