This is what we said on 07 Feb “Till prices don't breach 17,500 on the downside and 19,000 on the upside, we are in for a May - Jun low till 16500 as a conservative target"

Sensex did not clearly breach 17500 levels and bounced back. Now on the upper side prices have breached 19,000 levels. This again is a spoiler and suggests that our preferred view illustrated on 07
Feb is incorrect and instead of falling into May - Jun lows prices could indeed be rising in that time window.

We have inverted the Nifty to look at the price structure. Till prices don't breach 5600, Nifty could be headed to new highs. This means the worst performers like Power Grid, NTPC, Reliance Com, Punj Lloyd, GMRI, Bharti, DLF etc. should be getting ready to deliver more than 10% from current levels.

Markets always surprise especially if we are witnessing a complex corrective of primary degree (20 Sep 2010). I don't think anybody from Indian markets who has not traded the 90's can really relate to this. Let's see if this surprise happens. For us till Nifty breaches 5600, the illustrated view is preferred.

Mukul Pal, CMT, Orpheus Capitals, Global Alternative Research