It was quite significant that the index had closed at the top exactly at the limit. This had laid the foundation for a possible break-out upwards. The index signalled the break-out right at the opening on Wednesday by opening with a gap at 4648. It never looked back but raced upwards to post an intra day high of 4729. It lost 24 points to close at 4705.

Now that the Sensex has set itself free, it could move up to 4789, where it has a technical resistance. Quite likely even this resistance will be broken. That is becausethe previous peak of 4810 posted on July 15 is close-by and is sufficient temptation for traders to aim at.

In any case, if the index crosses 4789, it will move into a new orbit, which could be even more bullish. Looking over the Sensex portfolio, there could be profit taking in some scrips.

But on the balance there is scope for other scrips to move up further. Examples of this are Reliance Industries and Glaxo. Even NIIT could join the upward band. The buy signals in daily stochastics and RSI have strengthened further. Not only that some other signals, which are further refined clearly point out towards an upside break out.

This could end up in injecting momentum to other scrips, which are just making a beginning northwards or have taken a halting step upwards. In other words the bullish momentum could fire other scrips to an accelerated upclimb.