According to the recent developments in the stock market it has been revealed that the Sensex has risen by more than 150 points bringing good news for the world economy. The reason or this new found glory is expected to be the rallying in the stocks of global markets.

There are still speculations being made on how long this high is going to stay. It has been reported that the Nifty might be in for a slip of as much as 4200 levels. There is still need for cautious baby steps to be taken by traders in the market in order to ensure they don’t lose too much in case the market fluctuates again.

The European markets are continuing to rally, as they have in the recent past. It was also recorded that the FTSE from Britain saw a rise of about 2-3%. Asian markets which have so far been away from the wave of losses that have struck most members of the world economy were also seen to have gained about 3-4% in the recent trading figures.

Rakesh Arora of Macquarie said, "While markets are looking oversold, confidence levels remain extremely low. This may be a sign of a near bottoming but investors seem to be in a dilemma on whether to buy costly defensives or bottomless beta”.