Home > Market View > Is this the beginning of another bull market?

Is this the beginning of another bull market?

Tuesday, September 15, 2009 Leave a comment Go to comments

As I have been saying again and again- this market is refusing to fall. The markets have taught me one thing- The news is not important in itself but the “reaction to news” is very important. Drought, swine flu, high interest rates- we had been hearing all the negative vibes but the markets continued to move up. The inference is simple- this market is very bullish.

As I had written back in July, this market shall pick euphoria only when 5000 gets crossed on NIFTY. It is then when people will begin to realise that this market is bullish. People who have been hurt in the last bull run will slowly begin to jump in again and we might see beginning of another bull run soon.

I am not putting any targets on the markets but 5000-5100 is very much on the cards in the short to medium term. At the same time, we need one big healthy correction to shake out the weak hands.

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Categories: Market View
  1. krishna
    Saturday, October 10, 2009 at 12:27 pm

    hello sir,
    can u pls tell me what to do with KOHINOOR BROADCASTING LTD I have some shares @ 10. thank you

    • Sunday, October 11, 2009 at 6:50 am

      Krishna- Keep a stop at 6.5 and next targets could be 10 and 20. The stock is looking explosive in the short term.

  2. mahi
    Tuesday, September 15, 2009 at 4:05 pm

    sir,
    as you said the market is moving up,but individual stocks are moving i think.
    most of the stocks are not moving up, and some are hammered so badly and there is no movements also,intead some stoks are moving down.
    as a new person for this market am in confution that which share is to keep or which to enter? so please sujjest or advice for freshers in this market.
    if i sell the stocks ,then they begins to rise from there and am missing that large gains, if ikeep it in my portfolio then they come down.this is realy the situation lots of traders fasing. so please help me

    • sagecapital
      Tuesday, September 15, 2009 at 5:05 pm

      Mahi- there are no right answers to this. If you have a successful strategy and you follow it, PERIOD.
      Even we have exited stocks because we got stopped out. We have a re-entry strategy which allows us to re-enter stocks even if the price is higher than before.
      At the same time, you have to be patient with certain stocks (especially mid caps). These stocks consolidate for a while and then suddenly move up 10-20% in a matter of few sessions. In such stocks it is better to aim for 40-50%+ gains in 6-12 months horizon.

      Your observation is correct- some stocks are just moving in a range while others are climbing up nicely.When all stocks start to move up at the same pace, that might mark the end of the bull run! Please read the “Investor Education” section to understand how the game was played out in late 2007 just before the bubble burst.

      Last but not the least, you need a bit of luck for those super gains. But in the long run if you stick to your method, you will come out a winner. If you don’t have any method, then you just have to plain “lucky” to survive stock markets.

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