New Delhi, Oct. 11 -- Last week, the bulls were on the ropes and the probability of them staging a complete reversal was slim. A short-covering based upthrust on the last trading session of the previous week saved bulls from deep blushes. But for this pullback, headline indices had made lower lows and weakness was evident after the Reserve Bank of India (RBI) announced its interest rate policy.

There were multiple factors that unnerved bulls-India's forex reserves fell for the fourth consecutive week to $734.60 billion. The rupee is again at all-time lows. The food inflation continued to climb on expensive sunflower oil and pulses. The likelihood of a drop inrabi andkharif harvests by 6-7% due to poor rainfall was another negative trigge...