Currently we are seeing extreme panic in global markets.....Yesterday Dow crashed more than 800 points in initial trading before cloing 350 down to below 10000 in 3 years......Panic is everywhere....In Brazil, trading was halted twice due to 15% down circuits before closed at 4% down......This sort of volatilty is usually observed during the last phase of any bear market......But we dont have any clue as to when that will end......
In India, stock prices plummeted to multi year lows and this has no resemblance to the fundamentals of the company......Many blue chips have been hammered out of shape....Stock like L&T has been down 7% today though the comapany is probably one of the best in the world with constant growth record.......Midcaps have no price tags......NIIT, Praj are falling at 10% daily......
Neithers traders nor investors are making money at this time......Trades are dificult to initiate on both ways.....Today Nifty fluctuated between 150 points thrice at almost 20 ticks per minute......Logic says, we should go and buy stocks now.......But there are no buyers....Nobody wants to invest in equities......Business are suffering because of extreme credit crisis....though RBI eased CRR by 50 bps today......
People do not get to see these type of situations in decades......I have started my carrer amidst this...A huge learning for me.....Hope everyone's learning......
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