CNBC-TV18's Head-Markets Research, Anuj Singhal - That’s the inevitable question after a breakout on Tuesday despite the weak global cues. Especially the last half hour of trade was quite encouraging for bulls. The whole day saw large caps dominate and quite a bit of Nifty short covering, all started by Infosys, but the last 30 minutes saw the erstwhile momentum stocks coming into their own. So we has an RNRL with a build-up of 70 lakh shares and even other momentum stocks added around 15% Open Interest.

So is the momentum back? I would say Yes and No. Yes for this series at least, because we have seen Nifty slicing through a tough resistance mark of 4800 and No because there is still the hump of 5000/5050 and in the past we have seen how sometimes these Open Interest moves have flattered to deceive. But with global cues looking good and momentum on bulls’ side and still some room to go before Nifty approaches 5000/5050, I wont be surprised if we see an aggressive Stock futures build-up today.

After being the most underperforming sector for over a year, IT has assumed leadership over last few days and with valuations on their side, this rally may continue. While the rally was broad-based, one has to watch out for Satyam as that was the stock where we saw long positions compared to massive short covering in other IT bellwethers.

Oil & gas is the other space that has looked really strong and across the board. RPL has been the torchbearer from the frontliners and among midcaps, its Hindustal Oil Exploration all the way. This stock is up 70% in a month and not too far from its 52-week high

DISCLAIMER: The author is not allowed to trade in equity markets including Futures and Options. His only exposure to capital markets is via shares of TV18 and Network18 granted to him as ESOPs by the company and investments in some long-term mutual funds.