Indian stock market is falling for the pleasure and volatile downward bias after Diwali last year, when the market reached a level of 6350 divan near all-time high. Since then, the markets traded in a range, but the last few days on the back of concern shown FIIs were the markets to a new lower range on the back of high inflation, political tensions, loads of scams, political drama, news of weak IIP growth figures, the fear of RBI rate hike and so caused great volatility in the Indian Stock Market, while the Global peers seem stable.
So why did the market fall, and why FIIs are selling stocks in India?
foreign institutional investors (FIIs) were poured in a lot of money throughout 2010, about $ 28 billion money came to India from global investors. Complete 2010 rally came on the back and the support of FIIs who kept pumping money in the ever-growing and prices.
Indian mutual funds, and saw the withdrawal of new investments, and they were on the sidelines. Now, those who regularly buy the FIIs were shaken internal affairs and affairs of our country, India is currently facing.
Indian government in the Catch 22 Situation
of high inflation remains a major challenge for the Government. It's a catch 22 situation for our government, since they are responsible for taming down prices and inflation without hurting economic growth industry.
Lower IIP no.s came as a double whammy for our market, but market that has survived many financial scams, corruption, political tension and drama of the opposition, lower IIP no.s not expect our market and it is sent to market knee jerk reaction.
All of these issues along the political stability of the FIIs are concerned and they are selling and the withdrawal of funds from riskier assets utočišta.Globalni scenario seems much more stable for now, but who also says that money is moving out of here and go to places where there is less internal issues for now.
This is Exit FIIs India - only temporarily Weakish Feelings
His emotions and human psychology that makes investors Buy - Sell Out or the shares or the country overall. With FIIs are selling these days, lots and loads of people concerned and ask if FIIs are exiting India?
to speak of logic. They have invested more than $ 28 billion last year in Indian equities, the markets have gone a lot since then, not a crime that FIIs have been booking profits and taking some of it home. May they be sold now and they'll buy again at lower levels when the price reaches the desired zone.
When the Divan -? Market rates fall get up and go again
When the basics are not saying much to tell a story, your technical analysis skills to help understanding the market and its future. Fundamentals can not predict the peaks, we can not predict the market bottom, its forms and technical studies, which brings something that seems so unpredictable.
Our analysis of the Indian stock markets suggests that markets are still headed in the days ahead. For now, a wonderful future (5654) does not look bright, and I believe that it could see 5400 levels on the downside, it is the goal of 5370-78 I am looking at. But it will not go there right, it will require some more pain and reaction that will take place in the process.
My understanding of the market tells me that will prove delightful temporary bounce back from 5550 levels on nifty future, which is 100 points below the current market price. We are very likely to see at least 120-130 points bounce back in a great off 5550 levels , which jesljedeći close level of support for the market is likely to act as a cushion.
adorable lower end of the Target Price and the bottom
dead cat bounce will be short-lived , and probably will happen very quickly with a lower level. On the higher side, while nifty futures bouncing back will be facing strong resistance at 5705 and 5750 levels that will do something to cross not, of which will again cause a major sell taking it to the panic zone of 5370-5400 on the sofa.
For now it looks as if the bottom for the market to be near 5400 levels. By the time it happens almost all of which will be discounted and then the market will be looking at a favorable financial budget, guess who will be on the market by bringing in much needed stability.
Happy Investing!
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