Indian stock market after its long journey through bull phase, according to some experts, is entering its tryst with bears with mid to long term association. “We are likely to see a sideways movement for the next one year at least” says Edelweiss Capital Chairman and managing director Rashesh Shah, adding that the next 3-4 months could be tough. “There are no positive triggers in sight. Inflation and crude oil prices are still not under control, and corporate earnings are set to plateau over the next couple of quarters” he added.
Bears seem to be tightening their grip over the stock prices, as evident in the recent trend and technical analysis of stock indices, and they are forwarding in for the kill. The micro as well as macro condition are in their favor. On the macro front inflation escalated to a new 16-years high to 12.63%, creating expectation that the interest rate is due for a further hike. The global situation is more gloomy since the experts feel that worst of sub-prime crisis is yet to be unfolded. Given to this situation market watchers expect another round of sell-off in the next few days. Small investors or day traders should exercise extreme caution in taking the investment decision. It is suggested the ETFs which are yellow metal based are better options, since their price is down and may come down further. If that does not happen still gold is gold and safe in current situation. Bank interest rate going higher, investors may look for bank deposits as well, since for parking the funds till things change for better in liquid merits preference.
Bears seem to be tightening their grip over the stock prices, as evident in the recent trend and technical analysis of stock indices, and they are forwarding in for the kill. The micro as well as macro condition are in their favor. On the macro front inflation escalated to a new 16-years high to 12.63%, creating expectation that the interest rate is due for a further hike. The global situation is more gloomy since the experts feel that worst of sub-prime crisis is yet to be unfolded. Given to this situation market watchers expect another round of sell-off in the next few days. Small investors or day traders should exercise extreme caution in taking the investment decision. It is suggested the ETFs which are yellow metal based are better options, since their price is down and may come down further. If that does not happen still gold is gold and safe in current situation. Bank interest rate going higher, investors may look for bank deposits as well, since for parking the funds till things change for better in liquid merits preference.
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