The Fifteen Minute Rule (referred to in my previous post) is now described here .
The Nifty opened with a big gap, then stayed in a range, finally closing above 3000. The Index has gained over 800 points from the intra day low made at 2252 last monday. That is a gain of 35% in five trading days. If we take the close on Monday at 2550, the gain is 500 points, still at good 20%.
It seems fair to expect the market to slow down. The short term trend is up. We should remain buyers on dips. The first sign of trouble for the bulls will come if the Nifty were to close below 2900 - that will suggest a gap has been closed.
In any case, after a strong rally, all over the world, we should expect a period of quite with a sharp fall in volatility. This may be a good time to sell options (professional traders only).
I wrote a brief article for Money Today (from the India Today group) published in their Nov 13 issue.