The index rose to a high of 4569 and closed at 4554, posting a gain of 219 points or close to 5 per cent gain. The intra-day low at 4335 was much higher than the previous low of 4110. Not only the day's low did not slip below the previous close! This is a strong bullish signal. All technical indicators have turned green to buy, including for long term.

What could happen now on Friday is this. The Sensex has a very high probability of rising further. It could meet with a resistance at 4755. Whether it storms over this level is to be seen.

At the same time we run into the last day for the BSE week. If the normal practice of profit booking on Friday could converge with the resistance at 4755. You might as well do profit booking and wait for the index to prove that it can scale over 4755. Looking at this resistance, unless there is a very strong surge of funds into buying, we will end up entering another phase of consolidation at that point.

And consolidation may come in only next week. But we must recognise markets for what they are. As sentiments change, strategies too change sharply. As a sustained surge in the index can take it to the level of 5000 and perhaps even to 5185, fund managers could rush in with buy orders.

If that happens then the resistance at 4755 will be run over. Now then, the trickiest problem for you is this. If the profit booking tide sets it on Friday post lunch session, prices could slip before you can cash in! Frankly this phenomenon can happen right in the morning itself. So you need to fine tune your profit booking strategy. May be you can do part booking of profit early and switch thereafter to wait and watch. In short you need to tango with the market, judge the tune in advance and may be a quarter step ahead. Good Luck!