Indian stocks market has been witnessing huge ups and downs since last few weeks. Initially market fell sharply then it recovered steeply. Both situations are contradictory to each as there has been nothing special that has changed in the economy. This has made life of an ordinary investor very difficult. For anybody to know the direction of the market is a question of huge importance.
Indian stock market in tandem with other global stock markets has become so choppy that following a strategy of not investing at all seems to be the right strategy. These regular swings in stock prices are robbing ordinary investors. They are losing their hard earned money for no faults of theirs.
As an investor you should keep it in your mind that Indian stock markets will keep this momentum for long at least till end of October 2011. In this quarter, Indian stock market will keep swinging and it is quite difficult for the stock market to stabilize as well, as there is so much news at international front that stock markets are busy guessing what next.
Unless there is a clear picture about the USA and Federal Bank’s response to expected double dip in economy and recession as well as the situation in the Europe, there will not be any good sign. Fluctuation in markets will continue and rise of 500 points to Sensex in one day and subsequent rise are nothing but simply illusive.