CITIGroup's internal memorandum that the bank, which reported five straight quarterly losses, was profitable in the first two months of 2009 raised DOW with gain of more than 5% and creating chain reactions in world markets.
Indian markets may jump on the same reaction at least to gain a portion of the lost opportunity that is lost during the 2 holidays.
For trading on Thursday, it is quite natural to expect a gap up open. This bullishness can take nifty to 2650 to 2680. If 2650 levels are not held then we can expect Nifty to move below 2500 in next leg down. If 2650 is not held, buying PUTs of 2700 or writing CALLs of 2800 will give good gains.
Resistance: Nifty has initial resistance at 2595, if this is broken by gap up then we can expect 2625 which is next resistance level, if 2625 is broken then next resistance is at 2650 to 2680.