MARKET UPDATE:Sensex up 393 points at 57,814 and the Nifty50 at 17200, up 114 points

Among indices, the Nifty IT, PSU Bank and consumer durables were leading the gains, up by nearly 1 per cent each.

Individually, on the BSE, MTNL, HCC, Siemens were the top gainers, trading 4-10 per cent higher. On the Nifty, Adani Ports, Eicher Motors and Grasim were additonal gainers, up 1.4-1.5 per cent up.

Nifty weekly contract has highest open interest (OI) at 17700 for Calls and 17000 for Puts, while monthly contracts have highest OI at 17000 for Calls and 17000 for Puts. Highest new OI addition was seen at 17000 for Calls and 17000 for Puts in weekly and at 18000 for Calls and 17000 for Puts in monthly contracts.

FIIs increased their future index long position holdings by -0.67 per cent, increased future index shorts by -2.55 per cent and in index options by 29.21 per cent in Call longs, 14.60 per cent in Call short, 11.85 per cent in Put longs and 28.31 per cent in Put shorts.

The Nifty, according to experts, is poised to head into the upper range of the 17,100-17,170 band that has been on discussion in the last few days. This opens up chances of 17600, but the brokerage is not convinced of a vertical rise in the index and feels that yet another downswing is still on the cards.

"We will limit the upside expectations to 17300, and will look to remount the bear view if 17170 continues to resist again, or if there is a direct fall back below 17085," the experts said in a morning note.