Indian stock markets are beginning to look more bullish in proportion to the majority of the worldwide indices.

After a hefty fall on March 30, stock markets re-started the upward journey once again as foreign funds were seen purchasing with renewed energy. The build up in F&O segment also hints bullishness will persist in the coming time.

Renowned Technical Analyst Narendra Nainani said that Nifty April futures premium broadened from 1 point to 11 points on April 02, 2009. Contract price zoomed 5.26% and open interest added 14.68 lakh shares. The cost of carry also bettered to 5.24%.

This specifies unwinding of shorts and upsurge of major long positions in the contract. The market remained closed on Friday on account of Ram Navmi.

A few technical indicators are also showing optimistic signals. The 20-day EMA has now passed over the 50-day EMA from the lower level and the Sensex is above both these EMAs and is going up.

Volumes are backing this growth, as are the number of advancing shares every day. The MACD is also in the optimistic zone.

In contrast, some of the stock experts think that the recent rally in the Indian bourses was completely directed by the worldwide signals and there is no alteration in the basics of the domestic financial system.

Though the fundamentals of the Indian economic system have not meliorated significantly, the G20 declaration of a trillion dollar fund for the IMF to lend to feeble economies has led to transformation in the overall reaction. The same can be seen in the stock market.

Players have written lower level puts from 3200 to 3000 levels whereas call buying was kept from 3200 to 3600 levels whilst call writing seen at 3700 strike hinting bullishness for the Nifty till 3600 levels in the near future.

On April 02, FIIsnet purchased index futures worth Rs 1616 crore and index options to the tune of Rs 228 crore whilst they net sold stock futures worth Rs 41 crore.