India’s Nifty and BSE stock indices took a serious beating. Dalal street punters are dreaded to discuss about stocks. Any discussion is self defeating. Leave alone watching something finance related in TV channels. Common retail investors are in no mood to understand and appreciate the see-saw relationships of market volatility and stocks.
The spreading economic mess of Europe has also been a cause of deep concern. The fall out of Eurocrats could have huge business and economic ramifications. The point is every one is unsure about any solution. Therefore it is not at all tempting to take a position on either the “game is on” or” the “game is over”.
Investors and traders learn chilling lessons every day. In today’s volatile market, picking the right time to buy or trade in stocks is something of a guessing game. That’s pretty basic, to ask, is it possible to take the guesswork out of your investment decisions? I wonder no and no.
Shaky inflows of foreign institutional investor’s investment into Indian stocks, weak rupee and lower growth forecasts put the mindset of the investors into a different altitude. In the absence of any definite cues pessimism rules the mind of investors.
Macro and micro indicators like inflation, fiscal and balance of payments deficit numbers are not that much encouraging. Indian currency has emerged as the game changer of stock market volatility in the past six weeks. The Indian rupee posted its eighth consecutive weekly fall. Volatility is at its peak.
Stock market is gasping for a breather. Corporates, traders and investors are like a trapped mouse without any clue. The pall of cynicism continues in the context of policy paralysis of the government decision makers.
Absolutely no second opinion on the fact that market toys with investors and traders emotions by teasing both with short-lived gains after huge losses! I seriously quiz to investors does this call for the need for more innovative style of trading strategies?
The moot question addressed by traders and investors are from here Indian stocks are headed where? No straight answer. Equally at the same time you may not also be able to conclude that the situation is some sort of ‘a bear in bull clothing”. No more guess work at all.
This sort of catch 22 situation is not a unique occurrence in stock market history. Value based investors too think twice to nibble on the long side. As every one knows that stock market is a place where money is transferred from a shorter term oriented active group to a small circle of patient long term passive investors to reap better harvests.
We have a situation in which qualitative analytical assessment of the market track is either absent or very few. Strangely we are only inundated with equity research reports. We need more qualitative analysis and not quantitative reports.
Are we then waiting for the dead cat to bounce?
At the same time any prudent investor should keep in mind that Why a falling stock is not always a bargain?
Your intelligence, trick or luck lies in identifying the under valued stocks.
Search for news and not Newspapers.
Search for analysis and not for reports running into pages!
Search for a qualitative and mature business and finance discussions by experienced experts in TV channels where not loaded with too much commercial advertisements eating into your concentration. Can you?