Uptrend Looks Solid

 The market continued to move up smoothly through the week, climbing to a 30-month high. The Sensex closed at 4125.12 points for a gain of 5.2 per cent. The Nifty was up 5.08 per cent, closing at 1311.15 points. The Defty was up 5.20 per cent as the rupee continued to strengthen.

 The broad-based BSE 500 saw a rise of 4.51 per cent. Volumes were excellent. However, breadth signals were weaker than movements in the pivotals.

 By weekend, declines outnumbered advances and the Nifty put-call (PC) was down to 0.3, which is fairly overbought though the PC has dropped lower in previous bullruns.

 Outlook: The uptrend still looks pretty solid despite being long in the tooth. It