Thursday, October 16, 2008

Nifty Charts in Bear Markets

CORRECTIONS IN A BEAR MARKET - SENSEX


 

 

TOP

BOTTOM

PEAK

BOTTOM

Value

FALL

Period of

YEAR

YEAR

VALUE

VALUE

Of Fall

%AGE

Correction

 

 

 

 

 

 

 

APR 1992

APR 1993

4546

1980

2566

56%

12 Months

FEB 2000

SEP 2001

6151

2595

3556

58%

20 Months

JAN 2008

So Far

21207

10240

10967

52%

9 Months

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CORRECTIONS IN A BEAR MARKET - NIFTY


 

 

TOP

BOTTOM

PEAK

BOTTOM

Value

FALL

Period of

YEAR

YEAR

VALUE

VALUE

Of Fall

%AGE

Correction

 

 

 

 

 

 

 

APR 1992

APR 1993

1281

600

681

53%

12 Months

FEB 2000

SEP 2001

1818

850

968

53%

20 Months

JAN 2008

So Far

6357

3199

3158

50%

9 Months

 


 

DOW JONES

 

NASDAQ

 

NIFTY LINE CHART

 

 

NIFTY CHANNEL

 

Will these supports (Dow, Nasdaq, Nifty) hold as shown above?

 

Your guess is as good as mine.

 

Best Strategy would be to presume they will hold atleast for the near term and take a call. If breaks then exit.  Risk seems limited.  In extreme panic do exactly opposite of what the herd does. No one can buy at the lowest reversal point of this bear market. Don't try, you will never succeed in it, but try and do strategic planning keeping in mind systemic risk and do take your own decisions with consultation with an investment advisor.

 

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