Saturday, May 10, 2008
Has Sensex slipped into Bear territory yet again
The short but smart Bull run in the Indian Stock Market is over and Sensex closed yet again under 17,000 this Friday. This brings out the question is Indian Stock Market is under the control of Bears and if yes how long is this Bear run going to last.
Well someone has said that Stock market is nothing but a glorified casino and its always hard to predict which way the market is going to go but it doesn’t deter people like us to test the waters and make our own predictions one way or the other, does it.
Here is what I think, In the long term while the Indian story is still intact but in the short run I won’t be surprised to see Sensex under 16,000 or touching 15,000 for that matter by next month. The US economy isn’t going to get any better and we are heading towards Dow Jones touching 12,000 by this month end. Inflation in India is at multi year high and elections are coming next year, so one can expect some slowdown in Indian economy as well.
I would expect Sensex to remain range bound between 16,000 to 18,000 in coming few months.