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Market continues to look bullish here irrespective of the Wall Street’s sneezing in the aftermath of Obama Health Care speech. Asia is trading in the positive territory; however, Australia and Japan are marginally in the red.

The SGX March Nifty is trading at 5088.50 as we write this market outlook. Chances are we would see a continuation of the upswing of the last three trading sessions even today since momentum is clearly in the bulls’ favor.

The NSE VIX has moved further down to 20.75 and the PCR has increased to 1.27-both are indicating further strength for the bulls. The fact that March Nifty 5100 Put option is also adding more than 1.1 million shares to its open interest tally clearly gives the confidence level of the bulls.

FIIs are on the buy mode: they have bought in all categories-cash segment, index futures and options and also stock futures in substantial quantities. We all know that our market dances to the tune of FII music much more than anything else.

We repeat: 0n the upside, above 5054, the levels to keep in mind would be 5063, 5086 and then 5137. Any major upswing would, however, be severely tested between 5150 and 5180 as it has been a strong supply zone any journey up.

Now, support levels would be 5054 and 5023 and below that the level of 5000 would act as a major support. Unless 4935 is now broken bears would not regain their initiative back.

Rajat K. Bose