Indian stock markets showed a great upmove in the last fewmonths and overall from the lows of March 2020 when the world was hit bypandemic COVID 19.
Now, from the last few weeks, the stock market is fallingand most investors are either showing reduction in their paper profits or lossesif they bought near the prices which are now looking like a top.
The top, for the time being, seems to be around 15,000 forNifty and 50,000 for Sensex.
However, stock is something that you trade but it is notsome arbitrary item. A stock represents ownership of the company.
Thus, financial experts are of the opinion that this time isan opportunity to accumulate stocks of companies that are fundamentally sound,have good brand value, and a bright future in the coming years and decades ofthe Indian economy.
Technical analysis experts remind us that corrections are aninherent part of a trending move. To elaborate, if the markets are to go up,then they will do so in three waves up of a larger length, but in between thosewaves the market will fall in two separate waves. But these two counter-trendwaves will be of a lesser price range than the upmove.
Though, for an investor who has booked losses, or is seeinghis unrealised profits evaporating, or unrealised losses increasing these technicalanalysis explanations mean little.
Fundamental analysis-wise, the various variants of theCorona virus, possibility of lockdowns and the consequent decimation of theeconomy are scaring away the bulls in the stock market.