“HISTORY TEND TO REPEAT ITSELF”
After the financial slowdown of 2008-09, market really succeeds in holding itself. On 10th May 2006 the market was on its highest mark 3754.25 (till that time) but market is obstinate that never listen to anyone. The market conditions suddenly changed and within a period of 1 month market touched the lowest low point i.e. 2632.80 on 14th June 2006. After that period, market really accelerate itself and never looked back and following the long up trend, the market touched it higher high point 6279.10 on 7th Jan 2008.
Year 2008 – 09, the Financial Crisis hits the global markets and it had severely affected the Indian Stock Market (NSE). After touching its higher high in the year 2008, the market had faced its lowest low 2524.20 points on 27th Oct 2008. The market was totally collapsed, and market had seen its two opposite side higher high as well as lowest low in the same year 2008. There was no ray of hope because the whole world was fighting against the Financial Crisis.
As very well said that, “Pain is always TEMPORARY, it may last for day or month or a year but eventually it will disappear”. The phase of Financial Crisis were over, Indian market again started accelerating itself and made the Record. On 6th March 2009, market was at point 2620.15 and after that day market never looks back and started following the long up trend of almost one and a half year and again crossed the 6000 mark. On 4th Nov 2010 market again touched its higher high mark i.e. 6281.80 point.
But after touching its record mark the market broke the Uptrend and again started following the Down trend and touched the 4613.10 on 19th Dec 2011. Many investors lost their money, left the market but there were few investors who had got the hope from the market that it will again go up and then the year comes 2012.
Year 2012 comes with a small silver lining. 2nd Jan 2012 first Monday of the year the market was at 4636.75 points, from this point the started rising (Up trend) and within 50 days the market crossed the 5600 mark and on 21st Feb 2012 market was at 5607.15. This point gave the positive hope to the Investors but then again market started changing its color from Green to Red and going down. You can see lots of major SUPPORT AND RESISTANCE in that period (from 28th Feb to 28th April 2012).
RESISTANCE (R) POINTS SUPPORT (S) POINTS
R1 5385.20 S1 5184.25
R2 5364.95 S2 5178.85
R3 5358.50 S3 5207.45
After getting lots of support, the market finally breakout the support and touch the Low point i.e. 5086.85 on 4th May 2012. It also indicates the worse condition of the market. In our study of Technical Analysis, there is an assumption which says “History tend to repeat itself” so according to current market situation, the time is not so far when market will again touch the 4600 mark and will restart the Accumulation Period…..!!!
Parveen Sharma
