Economic data is coming out on expected lines -howsoever bad- and the stock prices were at very low levels for more than appropriate length of time. It would have been too much for the prices to stay at such low levels for such a long period. Therefore, the bears must have developed cold feet and started covering their short positions though, there still are sufficient short positions holding in an anticipation that this bear rally may not last longer.

SENSEX/NIFTY have moved higher above their recent highs and the MIs and moving averages are signaling a very positive outlook in the near term. In other words, the Asian markets are buy on decline.

Most of the markets have left gaps behind. Markets could reverse back so that these gaps may get filled in the days to come. Watch out for the weekly outlook this Sunday on stocksweekly!
In the meantime, long straddles in options is recommended at a nearby strike, for medium term. May/June series would be better for medium term set up.

(U.K./European markets are not showing any enthusiasm in this Asian rally. The European markets need to be watched for their impending weakness).