Future of Indian Stock Market

Sensex (2007 -Till Date)(Click to enlarge)

Scenario 1-A decline from here on for 5-6 months and then the biggest bull run of India with targets of 40000-50000 and possibly even more.

Scenario 2-We move in the range of 12000-18000 for another 2 years and then the biggest bull run of India starts for targets of 40000-50000.

Why 40000-50000? I explained in my Elliot wave theory that stock Markets move in 5 waves and India is currently in its 2 wave so when 2nd wave completes 3rd wave will start which is the strongest of all according to Elliot wave theory which enforces me to say the best is yet to come.

The best time is yet to come for India.-Why? I believe the Law of Nature is you can only make big money in any field if very few people believe in that and most of the people are criticizing it.

Take an eg of IT Industry 15 years back ,India story 10 years back and currently Indian Stock Markets .

Note:All the above analysis is based on Elliot Wave Theory which I explained in my previous article.I will revisit my analysis if we move above 18000 in next 2 months.

How Dollar move from 39 to 52 Could be Predicted?

Basics of Elliot Wave Theory

The chart-1 explains how the Stock Prices,Gold Prices,Currency Rates move in waves in a long term.The first of the three figure in chart-1 explains that we will have 5 waves 1,2,3,4,5 and then 3 waves A,B,C in any price movement in Long Term.The 5 waves are divided into 3 waves up ie 1,3,5 and2 down corrective waves 2,4 .3 waves A,B,C are subdivided into 2 waves down A,C and one wave up B.

Other 2 figures in chart-1 explains the future price action after C wave .

Chart-1(Elliot Waves) Click to Enlarge the image

The second Chart is the dollar Rupee Price movement from April'2008-till date when dollar made low around 39 and then moved to 52 and then back to 46.The price movement is exactly similar to the above explained theory as shown on the chart. with 5 waves and 3 waves A,B,C that is correcting the 5 wave upmove.

Chart-2(Dollar-Rupee) Click to Enlarge the image

This is how I predicted dollar move from 39 to 52 and move back to 46,which I believe anybody can learn to do.What's next?

References:

For more information on Elliot Wave Theory ,Refer below

http://en.wikipedia.org/wiki/Elliott_wave_principle

Gold and US Stock Market Facts

Gold 1975-Present

US Stock Market (S&P500 )1980-Present

US Stock Market is falling or moving sideways

from 2001-2010 as shown in the chart

but Gold Rallied from 250$ to 1200$

during the same period.Its reverse happened in

1981-2000 period as Gold moved down or

sideways for 20 years and US market rallied in

1981-2000.This derives to the conclusion that

if Gold rallies then StockMarkets and Economy

goes down ie Gold is inversely proportional to

US Stock Market for last 30 years.

Reference:Gold Price chart taken from http://www.kitco.com/scripts/hist_charts/yearly_graphs.plx