Nifty and the Sensex scaled highest level in four months as Nifty comfortably settled above 10,550 levels. The rally was largely driven by auto stocks betting on tractors and farm equipment demand. Here are some trading tips.

· You can look to buy M&M at the current price for targets of Rs.625. We have been pushing M&M for some time and are now upping the target as a bet on rural demand.

· Buy Motherson Sumi at Rs.104 for targets of Rs.140 as the restructuring is likely to be value accretive. It will also gain from the pick-up in the auto sector demand.

· I reiterate my long buy call on Manappuram Finance as the best proxy for gold prices. Buy Manappuram at Rs.156-158 levels for upside targets of Rs.220 in one quarter.

Traders can expect some caution in the markets in the second half of the day as most market participants may choose to go light over the weekend.