More gains likely

The markets are likely to continue their march higher and the expected breather is unlikely to materialise. US stocks brushed aside the GM bankruptcy and surged ahead to put on a 221 points gain in the Dow and a 24 point gain in the S&P 500. The S&P 500 is now above its 200 DMA. Nasdaq is already above its 200 DMA and the Dow needs to add just 70 odd points to go over the hump.

This is likely to trigger more buying by the funds that track the S&P 500. Meanwhile Crude has also added $2.21 to close at $68.58. This is likely to further buoy the refiners and the upstream oil companies. Upstream oil companies have more room to rise from here. The Nifty has also closed above the important 4509 mark, the high seen on 19th May. The last of the shorts may now scamper for cover.