Have a look at the BSE SENSEX chart.
If you look at the peaks in the chart, they indicate the lacking streangth in breaching the range mentioned above on the upper side of it.
2 days back I heard Shankar Sharma, famous bear in Indian stock market, speaking on TV about correction in stock markets. He is confident that Indian stock markets are bound to see 10-15% correction in near term.
He mentioned that SENSEX could go to 13000 levels before reaching 17000.
Shankar Sharma's statement is based on performance of world stock markets. World stock markets are riding with demand from chinese markets. The problem is, demand in Chinese markets is depleting eroding the growth.
The current rally in Indian stock markets is more a technical rally and not the fundamental one.
So what does this mean for long term invetors? Should you stay away from stock markets?
It has always been said "every time the markets go down, that is a buying opportunity".
So if markets correct by 10-15% as Shankar Sharma says, be ready to buy stocks at lower prices for long term investment.
