india markets hit the bottoms

technical analysis demands,certain evidence which CAN suggest that the prevailing trend has been reversed,,,markets so many times produce such mooves that a technician starts believing that the end of the current phase is very much near,but market fools him,such things happen so many times during a strong trend that at one stage he just stop looking at such reversal signals and just wait for the LATE BUT CONFIRMED reversal signals,and he argues that ,,let the market itself say that its turning !!!!!!!....infact ,nothing wrong in such an attitude,but...at present the whole world market and india in particular is producing such signals that ,,,,,clearly suggests TO ME me that ...theres a very very high probabilty that sensex and nifty had seen their respective bottoms at their lows yesterday....such strong bearish trends cant reverse their course all of a sudden and overnight,,there will be some pattern formation on daily charts ,there will be abottom testing,there may be another small leg of downward move to produce positive divergance for the rsis and rocs ...a 3-6 months consolidation phase will be there........and as bottom formation in general phases out sector wise..some weak sectors will be seeing still lower levels in the medium term future,,but most of the active and fundamentally stronger stocks have seen their bottoms as on yesterday..
as we all know, psychology plays the most important role in markets,and at the pick of a typical top or a typical bottom the greed & fear factors reaches there extreme,,although there is no measurement for them...by just collecting news paper clips,,video clips of tv shows for one week..and watching both in a silent room can give a clue..in my opinion the fear factor is at its best now than ever before !!! fear among who ?? ,,a day trader is in its greep,an investor is out of the markets,,,infact selling his holding at current lelvels... there is redemption pressure on mutual funds.,an economist draws a gloomy picture....govt. auhorities at last accepting that yes we may be in recession{read mr.bernanke}..and the whole media..is in the bear hug......the picture is exactly reverse of the one which we saw in jan-08.....remember my words the long term india story is quite intact,,find out a country in the whole world thats been growing in the recent decade {after china} with a gdp of over 7%...so,this is the BEST TIME TO INVEST IN INDIA.
BJNAIK.17 October, 20083:47:08 AM