Recognize the Market bottom out point

POSTED BY somasekhararaom ON April 3, 2012 10:01 pm COMMENTS (13)

How to recognize the Bottom out point of the Stock Market? Why markets formed the bottom out in Dec, 2011?

13 replies on this article “Recognize the Market bottom out point”

  1. somasekhar says:

    Hi Ashal,

    I will invest that money in different instruments.

    Hi Rahul,

    That link is valuable and found out some valuable articles.

    Here below another link provide FII and DII Activity data……..

    http://www.moneycontrol.com/india/stockmarket/foreigninstitutionalinvestors/10/55/activity/FII

  2. Rahul says:

    You can check FII and DII daily, monthly inflows outflows over here http://craytheon.com/charts/fii_dii_nse_bse_trading_chart_graph.php

    If you know how to exploit such information you can make some serious money

  3. somasekhar says:

    Dear Ashal Jauhari,

    I am ready to invest in stocks, but not now. After 2 months, i will have 75 La. So now i am learning and i understand the power of money by this Forum.

    1. Dear Somsekhar, Good to know that you know the power of money & also learning to improve your situation. My take may sound a bit conservative to you but I w’d recommend that you should invest a part of those 75L Rs. in a Debt product also be it MFs or FDs.

      Thanks

      Ashal

  4. somasekhar says:

    Hi Ashal Jauhari,

    Sorry for late reply.

    http://www.onemint.com/2012/04/02/how-do-fii-investments-affect-stock-market/

    Based on above link, FII’s pulled out money from India in CY 2011 and i guess who missed the bus in 2008 invested in the current bull market.

    Yes, i am lucky by my paper purchases because i thought that i would hold these stocks for another decade.

    Thanks,
    Sekhar

    1. Dear Somasekhar, you are free to make any guesses. My only take for you ‘ll be to start investing your actual money in to the Eq. market to reap the long term reward. Sitting on the fence is not going to take you anywhere.

      Thanks

      Ashal

  5. somasekhar says:

    Hi Ashal Jauhari,

    Thanks for your replay.

    On Dec 21, ECB announced 643bn $ (500bn €) loan to European Banks to support lending and liquidity — — more than investors expected. At that time, Inflation in India and China is very low. May be FII’s borrowed money from European banks and invested in India and China (for Diversification) for the long term purpose. That’s the reason i am looking for a link where i can track the Inflows and Outflows of FII’s. Something might have happened in between Dec, 22 to Jan, 3.

    Actually i did the paper trading on Dec, 23 and bought few Mid and large cap stocks, Now i got huge profits from Mid Cap stocks.

    What about your view?

    1. Dear Somasekhar, are you saying that Inflation was running low during Nov-Dec2011 period in India? If they (FII) are so bullish on India’s long term growth, then why they pulled out from India for whole of CY 2011?

      Regarding your Paper profit for paper purchases made during Nov-Dec2011 period, My take you are plain lucky with your timing.

      Thanks

      Ashal

  6. somasekhar says:

    Hi,

    May be i asked this question in a wrong way. Actually my query is Why FII’s pumped money in between Dec – Jan? What factors driven the market at that time?

    I have another query. Where can we track the FII’s Inflows and Outflows on daily basis? Any one can provide the link?

    1. Dear Somaekhar, For full calender year 2011, FIIs were net seller. Now just in 3 months in current CY, they have put in a lot of money. In general If we compare the economic condition or parameters of India, it’s not as good as it was 1Y before around same time. Keeping these things in mind, do you see any logical action from FIIs?

      Thanks

      Ashal

  7. Sachin says:

    Even Warren Buffett cant predict the market mood 🙂

  8. Dear Somasekhar, nobody can predict the exact point of bottom or Top for Market. The market ‘ll keep doing it’s yo-yo. It’s up to us, the investors to avoid the noise & keep focusing on the long term picture.

    Thanks

    Ashal

  9. BanyanFA says:

    If this question had an answer, then every one would have been a millionaire. Hence, you would have already heard many advisors to invest via SIPs into mutual fund and to avoid timing the market.

    Regards
    BFA

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