If Tuesday's stabilising is any guide to go by, the market risks can be said to be considerably reduced. Not only that, scrips are now likely to catch up northwards.

The unfolding of the political drama in Delhi is now expected to become clearer by Thursday. With Congress-I not willing to take the initiative to pull down the BJP government and with difficulties being experienced by the Jayalalitha initiative to forge an alliance among the other opposition parties, punters might well be taking a bold step forward.

Rewards are likely to be pretty good for those who dare to take the risk now. And this is reflected in the technical position of several scrips. If punters decide to take a stake at the current depressed prices, I mustpoint out that there is considerable scope for gains. On Tuesday the Sensex hit a high of 3486, as compared to the previous high of 3469. On the other hand, the low for the day was at 3438, an extremely good jump over the previous low of 3381. The index has a good chance to move up first to 3520. And now this is what the stochastics has to convey. The risk for a downward movement is very limited. There is a good support to stability at the current level.

Should the index slip to an intra day level low of 3446, one may enter quite confidently, as the risks would be very low indeed. Will the market move up? The answer from the stochastics is this. Stability has now come, and therefore thee is good chance for the market to move up.