there have been two options all along since the correction had started in the indian indices some time back..
1. sensex breaks 15300, makes a low and moves up to new bull highs
2. sensex falls to 14300-13800 zone atleast ( to make a lot of structural sense)
i have been flipflopping , begining with 15300 and then bearish views of point 2.
the smart rally of late had given hope that a low had been seen coupled with the rise in spx above previous highs ..autos, consumer durables, fmcg, pharma, cement stocks staging nice rallies and giving an indication of leadership sectors.
however the situation points to the likely hood of scenario 2 playing out and very soon panic dives to sub 14000 is on the cards.sensex shouldnot rally much above 17000 levels now on consistent basis.
one may correlate economically ;the pain for indian companies may have just begun.
i still expect gold to reach 1350 usd levels.silver crude all are in bad shape which may point to general risk aversion globally.
followers of bond markets may mail me their interpretations especially with the headfake US market had done.
