Bull Run ! Continued...
Before writing about Bull phase characterstic, I would like to summerise the affairs of world.
At the moment, I am optimistic. I categorised myself in the group of Bull as far as India is concerned. The rational behind my bullishness is based on consumption story of India and its inherent strong base. There is no denying fact that Europe face a severe financial crisis and US debt is a concern. Overall, the developed market may reel under the low growth and their Inc. will fight for survival. But this is the time when a new leader among nations come out and other nations start recognising the fact of a growing and strong nation. Like, China got a brand of strong nation when US faced with sub-prime lending crisis. India has now the opportunity; but how far the leaders, thinkers and planners of India will take initiative in this regard, is a matter of time. However, we have experienced in past that India's intellectuals get rise when they are on the brink of drowning. Till date, action taken by Indian government are disgusting and pinching to all Indians especially middle class which constitues nearly 70% of population. India's general election is scheduled on 2014, barely 2 years from now. Under the circumstances, they hardly remain asleep; if such state of affairs lingers in micro front.
Till now it seems that the crisis of Europe is a political one. Good and well, if they settle the austrity measure to save their countries. US has enough resources and various measures to tackle their own problem. And, what I believe that US will not likely to lose its numero uno position among nations. As far as China is concerned, nothing spectacular about the nation either on Crisis Management or on qualities to lead the world. Moreover, chinese will web themselves in the crisis in future.
Now state of affair in India's stock market is ruthless selling, very much price distoration of each and every stock. General Market sentiment is bearish. Selling is the only mantra. Articles publish in print and electronic media preach doom and gloom. Analysts worries about the Future. Those who were long through the worst of the bear market have recently capitulated, given up and sold the rest of their holdings in disgust. But, Valuation remain attractive. But the sentiment lead the fall. At this time, innovators and early adopters begin to buy. In the stock market, out of four phases, one phase is named Accumulation Phase, that is - Beginning of a Bull Run. The charastractics of this phase comprise of the facts that I mentioned before. One key factor is that as days pass, overall market sentiment begins to switch from negative to neutral. That's to watch out.
In the next articles, we will discuss from technical perspective.
to be Continued...............