The market is expected to see a further rise of 150-200 points in the Sensex. This is likely to be followed by short-covering or long position, which can take the index to around 4,500. The report says that the Indian market has risen by over 17.5 per cent over the last one month.

While justifying the current rally, SBICAPs strikes a note of caution. ``If the funds flow to emerging markets are incremental flows or hedge funds investments, then the outflow can be as sharp as inflows.'' Besides, it says big buying happened when the operators were motly short on the fall of the government. Selling can happen, as suddenly, when long positions are again built up in anticipation of a continued rally, says Prateek Agarwal,assistant vice-president, SBICAPs.