The Nifty gained 90 points over the day to close at 5122. Anotherday of follow-up strength for the markets yesterday as they opened with an upside gap and thereafter smoothly kept moving higher the entire day. By testing the levels of 17200/5130 again the indices have completed yet another beautiful looking “V” shaped reversal (See Exhibit 1 on Page 2). The move yesterday was much more encouraging in comparison to Monday as the gains were registered intra-day and with better market breadth. Most of the technical studies remain positively placed and hence further upside can be expected after some consolidation. Quite amazingly and positively, the oscillator studies have only now generated a buy trigger and they remain within the neutral zone. The MACD indicator has seen a bullish development in the last couple of days while the candlestick pattern formed is supporting the bulls. The next major resistance for the indices stand at 5180/17500. For the day, support seen at 5105 and 5078. Overall, with the uptrend intact and momentum getting stronger, the rally is likely to get broad-based and on better volumes.