Targets reviewed for Sensex

As mentioned in my article in October, the sensex successfully and pretty swiftly breached the 8000 mark and reversed from 7697 to its present level of 10100. A near 30% rally has already come and gone within 2 months. So purely on technical basis where do we stand now?? The sensex has been struggling to close above 10123 for the last two trading sessions. A cursory glance of the futures and options market lends conviction to the thesis that this current bear market rally is not sustainable and its only a matter of time before profits get booked on this wonderful bout of short covering that we have witnessed this december. Throughout the last trading week we have witnessed short covering on rate sensitive stocks with lower volumes and decreasing open interest, which is a clear indicator of fresh long positions not being added at current levels. Investors would be well advised to stay away now if they have missed the 30% rally so far. The markets will give u some more opportunities during their next rendezvous with the bottom in place.