Indian stock markets showed a great upmove in the last few months and overall from the lows of March 2020 when the world was hit by pandemic COVID 19.
Now, from the last few weeks, the stock market is falling and most investors are either showing reduction in their paper profits or losses if they bought near the prices which are now looking like a top.
The top, for the time being, seems to be around 15,000 for Nifty and 50,000 for Sensex.
However, stock is something that you trade but it is not some arbitrary item. A stock represents ownership of the company.
Thus, financial experts are of the opinion that this time is an opportunity to accumulate stocks of companies that are fundamentally sound, have good brand value, and a bright future in the coming years and decades of the Indian economy.
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Technical analysis experts remind us that corrections are an inherent 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 those waves the market will fall in two separate waves. But these two counter-trend waves will be of a lesser price range than the upmove.
Though, for an investor who has booked losses, or is seeing his unrealised profits evaporating, or unrealised losses increasing these technical analysis explanations mean little.
Fundamental analysis-wise, the various variants of the Corona virus, possibility of lockdowns and the consequent decimation of the economy are scaring away the bulls in the stock market.