I need to return my result set in XML and this works fine, but if the number of records are increased, my xml output is truncated here is my query
If your XML result set is still being truncated even after changing SSMS Options, use the SQLCMD utility with :XML ON option prior to running your XML statement. Direct your output to a file using the -o switch. SQLCMD is a command line utility that is very simple to use. See http://msdn.microsoft.com/en-us/library/ms162773.aspx.