Updated on Thursday, May 07, 2009, 00:00 IST

New Delhi, May 07: Those who anticipate stock markets to stage a continuous rally after a new government's taking charge at the Centre has another reason to remain optimistic as an analysis of technical charts has predicted a "multi-month rally" in India by June.

"Corrections are due in the most Asian-Pacific indices by mid-May and they should last through the end of the month and possibly into June. Thereafter the multi-month rally should resume," said the US-based research group Elliott Wave International in a study, based on technical charts, for Asia-Pacific markets.

The wave structures in most regional indices in the short term indicate that the rally since the March lows is on its "final leg," said research group's Asia-Pacific Financial Forecast editor Mark Galasiewski.

Stock markets across the world witnessed a strong rally in April. The Dow Jones World Index jumped 12 per cent, the largest monthly gain since in 1991, and the BSE Sensex rose 17 per cent in the same month.

"But regardless of whether the current rally is the start of a new bull market or just a bear-market rally, we expect higher prices after the pullback ends," the report said.

Signaling a pullback in the Indian market, post the general elections results on May 16, 2009, the report affirmed that there would be a small-wave correction.

Bureau Report