History or Mystery?
On 11th February 2008 NIFTY crashed 263.35 points, Sensex was down by 833 points. Exactly after 8 years on 11th February 2016 Nifty has crashed 239.35 points and Sensex is down by 807 points.
Even though I am not attaching this event to any superstitious beliefs, I am surprised by this coincidence. Some one may attribute this phenomenon as “Time Cycle Analysis” and try to sell their strategy, stating we had predicted this fall.
On 11th Feb 2008 NIFTY broke 200 Day Moving Average (DMA) and continued its southward journey. Whereas on 11th Feb 2016, NIFTY is already trading almost 15% below 200 DMA. In 2008, within 10 months, NIFTY crashed almost 50% of 200 DMA price. If we extrapolate the same scenario, which may be unlikely, NIFTY will trade close to 4400. It’s too early to predict such a bad figure for NIFTY. I firmly believe that “Time in the Market is more important than Timing the Market“.
One more interesting statistics which got circulated today in social media is
Sensex(22951)+Nifty(6976)= Gold (29927).
Bhagavad Gita Lessons applied to Market
I am correlating market action to a lesson from Bhagavad Gita to give a spiritual touch, which I believe is useful to keep the faith in investments intact when there is blood on streets.
Whatever happened, happened for the good: Great stocks will be available at desired valuation.
Whatever is happening, is happening for the good: NPA problems of the financial world is getting cleaned up!
Whatever will happen, will also happen for the good: One or the other day, Indian markets will be decoupled from other markets to a certain extent and rely on local micro and macro economics.
We have to remember one more lesson from Bhagavad Gita: “You came empty handed and you will leave empty handed”. In the stock market, many people will come with a lot of enthusiasm and money and will go empty handed because of their own mistakes.
“Man is made by his belief, as he believes, so he is”. Don’t get disheartened by the market crash, learn from mistakes and definitely, you can earn.
Note: Information presented is for education purpose only.