Indian Equity Markets

I am not bearish by choice, but that is what I am seeing. Markets are going through a technical bounce, which very often happens in a bear market and I am quite certain that we will see new lows again. How soon can be anyone’s guess?

The BSE Sensex (Picture at the bottom) moved from 9000 to 12671 a move of 3671 points and from 12671 to 8820 another move of 3851 points a total of 7522 points without any consolidation.The recent move of the markets has baffled everyone; however the moves are all too familiar to anyone who has been in a bear market. Markets need to correct in time, price correction is just one of the variables.

It’s quite clear to me that the current ongoing rally in the market is just a bear trap and the markets will see new lows, the ongoing pull back is absolutely manic and it seems like a new bull run has begun.(Or has it)

However after such a sever breakdown the market needs to breath a bit before its starts moving up again, volumes need to thin out and the volatility needs to subside.The techinical bounce can go all the way upto 10500 or even 11000 i doubt it can sustain that for too long.

# posted by Gyp Trader : 4:07 AM