Since 2days whenever market opens, it makes and attempt to cross 5300 on the Nifty but whenever Nifty crosses 5300 there will be fresh selling and short selling in futures market. Its seems to be that "Bears are back!!"
(Bear is a market participant who have negative view on the market and believes market will fall. Bears are mainly people who short sell stocks and make profit).
I predict market to fall to 5100 by end of june. Here are the points which make me believe that.
1) Most of the prominent stock market analysts have started giving out bad picture of the market. Usually major analyst make use of complex mathematical charting softwares which display the key trigger points of an event in the market. These trigger points show whether market is going to rise or fall. Right now Sensex and Nifty have come down below a key trigger point. This has confirmed the stock market participants belief that market is going down.
2) Indian Met dept. has brought down their monsoon forecast predicting a "below average" rain. This will mean that inflation might stay up for a while not allowing the RBI to think about bringing down interest rates.
3) FIIs have been net sellers since last 10 trading sessions clearly suggesting that they are not interested in buying at this point of time.
4) Govt.'s inability in making favourable market policy inspite of having majority parliament vote is giving negative signals and causing irritation to not only FIIs but also Indian investors.
5) European problem is getting worse as one nation after other is getting on a verge to default its international debt. People are observing Spain closely as Spanish economy is 10 times bigger then Greece and failure in Spain might cause collateral damage for world economy.
6) Federal Reserve of US has cut down the GDP estimate for second time in a row confirming the slow down in US. Economists have again started debating the possibility of double dip recession in US making US investors and global investors more nervous.
7) Indian stock market sell off of tuesday has got every market participant worried. In search of answers, people are coming out with every possible kind of theories and conspiracy theories.
Indian markets are so vulberable right now that markets are starring at a scenario in which one bad news from US or Europe, One more scam in India, One more downgrade and may be a terrorist attack or natural calamity away from a major sell-off.
I am keeping my fingers crossed and justing retail investors to stay away from markets for a while.
(Bear is a market participant who have negative view on the market and believes market will fall. Bears are mainly people who short sell stocks and make profit).
I predict market to fall to 5100 by end of june. Here are the points which make me believe that.
1) Most of the prominent stock market analysts have started giving out bad picture of the market. Usually major analyst make use of complex mathematical charting softwares which display the key trigger points of an event in the market. These trigger points show whether market is going to rise or fall. Right now Sensex and Nifty have come down below a key trigger point. This has confirmed the stock market participants belief that market is going down.
2) Indian Met dept. has brought down their monsoon forecast predicting a "below average" rain. This will mean that inflation might stay up for a while not allowing the RBI to think about bringing down interest rates.
3) FIIs have been net sellers since last 10 trading sessions clearly suggesting that they are not interested in buying at this point of time.
4) Govt.'s inability in making favourable market policy inspite of having majority parliament vote is giving negative signals and causing irritation to not only FIIs but also Indian investors.
5) European problem is getting worse as one nation after other is getting on a verge to default its international debt. People are observing Spain closely as Spanish economy is 10 times bigger then Greece and failure in Spain might cause collateral damage for world economy.
6) Federal Reserve of US has cut down the GDP estimate for second time in a row confirming the slow down in US. Economists have again started debating the possibility of double dip recession in US making US investors and global investors more nervous.
7) Indian stock market sell off of tuesday has got every market participant worried. In search of answers, people are coming out with every possible kind of theories and conspiracy theories.
Indian markets are so vulberable right now that markets are starring at a scenario in which one bad news from US or Europe, One more scam in India, One more downgrade and may be a terrorist attack or natural calamity away from a major sell-off.
I am keeping my fingers crossed and justing retail investors to stay away from markets for a while.
