The rally continued gaining further momentum and the most important point is markets have managed to close above 200-days moving average (200 DMA). They have gained almost 16% in last seven weeks and there is also global markets rally that is adding fuel to the rally.

Looking at US markets Dow has closed at the highest level since 2008 May while Nasdaq has closed at levels that were seen in December 2000 after the bust of tech bubble. We will see our markets opening with a gap following the global rally on Friday.

On analyzing short-term charts of our markets 5200 is key level to watch on downside. On the upside for the Nifty, 5400 is very crucial and for Sensex 18000.