BSE Power is one of the worst 12-month performer registering -3% for the period. Barring BSE Real rest of the sectors have outperformed power. BSE Consumer durables were up 82% for the year.

For us at Orpheus, a year-long loser is attractive value. To study the price structure, we inverted the chart. What did we observe? First the price structure seems like a completing formation. It is either a (4) intermediate or an X primary circle wave. Second, RSI momentum has been consistently over reactive suggesting that even if the prices head to 2,700-2,600 levels, the price structure is heading for a large multi year reversal back to 4000 and higher. Third, it's too early to call the ongoing leg from 3,400, as a start of a new trend.

What's the preferred view? Any fall in BSE Power is an opportunity to accumulate. BSE Power could be a potential outperformer now that it has proved to be a laggard among peers. From timing point of view, I find it tough to see Power making a low beyond Q1 2011.

Mukul Pal, CMT, Orpheus Capitals, Global Alternative Research