See mkt rally topping out this week: Elliot Wave

Excerpts from Markets Midday on CNBC-TV18 Watch the full show » ALSO READ See what other FIIs are saying about the markets See what other experts are saying about markets See what Udayan Mukherjee is saying about the markets Nifty BSE | NSE 31/05/12 Are Mutual Funds betting on Nifty?

Mark Galasiewski, Editor, Asian-Pac Fin Forecast, Elliott Wave International, sees the rally on the Sensex topping out this week. "At a minimum, we would be looking for a 38% retracement of that advance. At present, if we go a little higher, that should lead us back to the end of the previous fourth wave which is the April 22 low of approximately 10,700 on the Sensex or 3,300 in the Nifty."

He feels markets won't go back and retest its October 2008 lows.

Also see: Mkt appears overbought, may see a pullback: CLSA  

Here is a verbatim transcript of the exclusive interview with Mark Galasiewski on CNBC-TV18. Also see the accompanying video.

Q: What happened in the US markets yesterday? The S&P 500 breached the 900 mark and broke through that 878 level which acted as a resistance. How significant is that upmove and the breach of that level?

A: The absolute numbers are not that important, what is important is the wave structure of the advance since March lows, which is closing in on its final run. We think there could be a correction soon and that would also follow in the Sensex as well.

Q: Would you be able to quantify what the pullback can look like, from what levels do we see this pullback coming through?

A: The Sensex rally should top out within days, probably this week. At a minimum, we would be looking for a 38% retracement of that advance. At present, if we go a little higher, that should lead us back to the end of the previous fourth wave which is the April 22 low, approximately 10,700 on the Sensex or 3,300 in the Nifty.

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