The fall of the index had been a rather ferocious one this time.....75% retracement has come in less than 10 months.......Only once in 2000 fall, India saw a correction greater than this magnitude....There was a 100% retracement over a period of 2 years.....But after scaling to such highs in Jan, this kind of a fall has totally destroyed investor confidence for the short time.....But everybody still hopes of a rebound in the market......Is this possible???? Nobody will buy, yet everyone wants Index to go up........
Technically speaking, both sensex and nifty have taken support at 75% retracement level......But the downward divergence is huge......So, there can not be any posibility of a major bounceback (unless some global antibiotic is given)......But rather a consolidation should occur around this level.....For investors sitting on cash and having a time horizon of 2-3 years should start buying stocks like Telco, Tisco, LT, Hindalco.......Infact there are number of them and study the company prospects before entering.......
But, if the current lows do not hold, then there could be another leg violent movements.....
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