(Source: The Times of India)
MUMBAI: Could Monday's rally, that took the sensex beyond the 11K mark once again to a close of 11,309, sustain? That's one question everyone on Dalal Street wants to know.
The good news, according to technical analysts, is that the sensex could rally for another 1,500 to 2,000 points from here before meeting with any strong resistance. And for the NSE Nifty, the rally could be for about 150 to 200 points from its current close of 3,491. On Monday, the nifty ended with a gain of 211 points.
The bad news is that there is a high probability the sensex could again come under strong selling and dip below the 11,000 level. And worse, the benchmark index could even trade in four digits, that is go below the 10K mark over the next few weeks. On the downside the sensex could trade around the 9,000 mark, head of derivatives at a local brokerage said.
The last time sensex had traded below the 10K level was in July 2006. In case the benchmark index trades at 9,000 level, it would be 58% off from the all time high of 21,207, scaled on January 10 this year. At its current close, the index is off nearly 47% from its all time peak.
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