Originally Posted by Akash Bhi:
Well , good post....but all our technical analysis may not be correct in this present situation. Reason behid is
Worldcup 2011
govt image
lot of good declaration.
because after march for all declaration mkt will be in 5500 automatically. I talked with some mb person, they said they have started to buy share. but in very slowly. They want to buy maximum share after record date.
So i think it's positive sign given by mkt today. If tomorrow mkt index -50 or +50 then we can say mkt is stable. but other big fish says that mkt is waiting for another correction. But they thought to be after 7200. But apparently it happen today. so tomorrow is a very important day. if mkt started with big - like before....then no hope......
if started with positively.....then i think it will stop in 7200-7500 index....
it's my opinion...
let see what happen tomorrow.....
1.
How about liquidity crisis? Did you consider it?
I'm actually more interested in liquidity crisis than all other things!!!
GOV has not so much extra money to inject in the market whenever it falls!! Remember that we are a poor country,and luxury is only fit for our politicians,not for stock market or poor civilians!!!
Moreover,did you check out the conditions of banks' finance? You would be surprised to see what is going on inside!!!! How are MB gonna give loan to general traders? But most important question is : why will they give loan to general traders in such a risky condition of the market?
2.
Did you consider budget? Let's not forget that budget is ahead,and government has to take some important decisions regarding finance in budget which also effects the stock market!!!! Do you think,finance institutions won't check out first what gov is upto in next budget,before they really go for invest?
3.
How about stock price levels? At what level of price do you think a stock becomes lucrative for big buyers? What if you were a big buyer? As a big buyer,what would you expect from the market? More fall? Cheaper price?
If market can rise for one year,why not it fall for at least six months?
Back in 2006,stock market started to fall from January/2006 and remained down till June/2006!! This is six months bearish move. Why not now,too?
4.
Declaration has nothing much to do with index rise. Big buyers mostly don't buy before declaration. It is rarely seen that a stock price rises more than 50% after its declaration. Actually,in most cases,declaration news stops the stock to rise further. Check out your charts,and news of a stock declaration of last five years! Good declaration has nothing much to do with stock rise and index rise!
5.
How about the general traders? Do you think,traders are not in panic? What do you think of market psychology now?
If we try to understand general traders,we would see that they are in FEAR. Actually,many of them want to get out of the market with least amount of loss. Profit is far away,they don't even care about break even point now!! So,how does this psychology effects the market!!! It effects big time. Everyone is looking for a way to get out of the market,as if panic has set in like ghost. And whatever you tell them to do,they will just do what their mind says. This panic will last quite a long time. Here lies the main problem of our current market..And this is one of the main reasons of current bearish move!
If market needs a rise,general traders have to become bullish again!!
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It is uncertain when index will rise. Nothing shows that it is gonna rise pretty soon. But things may turn around quite dramatically and positively,and index could crazily rise again. But for now,it is better to watch the show as it happens. Many traders' remorse and sorrow will create another door for other traders' satisfaction and profit. Time will heal everything,and we have to wait for time!! All else is just a bluff.