Why market is bleeding in red?

Reasons for the current melt down!!

Yes, the market is down for the past 2 years.... What are the reasons for the current meltdown? The following reasons may be attributed to the current situation of the market!

1. The inactive Government

2. The 2G and other Scams

3. Higher Inflation

4. Global economy still in doldrums

5. Unfavorable RBI policies towards curbing the inflation

6. Lower GDP growth rate

7. FIIs afraid to invest in the Indian markets

8. Higher Oil price and commodity prices

9. Investors stay away from the Indian market


Whatever may the reason an investor should be happy about the present market condition as nearly 75% of the tradable securities are down by more than 30% from its 52 week peak price. Interestingly among them nearly 425 stocks are down by more than 70% from its 52 week peak price. Though not all the stocks are worth investing some of them may be a great find. As an investor we can make use the opportunity thrown by the market and to borrow the quote of Warren Buffet “we should look at market fluctuations as our friend rather than our enemy; we should profit from folly rather than participate in it.” Tomorrow let us check which stocks have lost the most in the current meltdown….

The Indian market is bleeding in red...Why it so?

The banknify crossed the 200DMA and the Nifty was about to cross the 200 Dma few days back and today it fell down below 50DMA?? It really fooled many technical players..As every one jumped and bough nifty near 5700 and BN near 11340 levels.today Nifty and Bn opened in deep gap down and ...now Nifty trading near 5480 and Bn near 10890??? i am receiving so many desperate calls from people who caught between hell and deep sea!!

Many of these people had strong faith in technical analysis and that made this huge loss..The technical analysis is good..but trading plan with levels and managing trailing stop loss is necessary in any market.

When every one buying at high...in fact we start selling near11400&5700 levels based on our fundamentals..That is the macro economy of the world.We sold almost in the peak based on these economical facts however the market was showing bullishness.

The facts are..

1.The RBi Repo Rate like of .50Bps was expected by us..There are about 25 tv analyst failed in this expectation and they keep on recommending buy in nifty&bank nifty..!! i was shocked by their analysis..the best thing i could do was... off the TV.

2. Fear of U.S Default

There was no compromise in sight to raise the U.S.'s $14.3 trillion debt ceiling by August to avert a default that could trigger global financial chaos.

3.European sovereign debt crises

European Debt Crises Rising Everyday one county to other country.

More...

Credit rating agencies have threatened to cut America's top-notch AAA bond rating if an increase in the debt limit is not accompanied by a plan for controlling long-term deficits.

A default and downgrade could push the United States back into recession and send shock waves through global markets.

Wall Street banks are preparing for the real possibility that the United States will lose its top credit rating which they say will cost the country $100 billion in additional interest payments and hurt both consumers and the economy.

"That's a negative for growth," Mike Hanson, senior U.S. economist at Bank of America Merrill Lynch, told reporters on a call organized by a Wall Street trade group, the Securities Industry and Financial Markets Association.

"That's an environment where hiring is going to be much less likely than it otherwise would be," he said.

The stalemate in Washington is already having an effect, with investors starting to take cash out of the market and shifting away from some long-term investments.

There was no hint of panic, however, as markets held out hope the stalemate could still be broken.

...Tell me who will remain long in market peaks by knowings these economical crisis going to take place...?