Tuesday, September 3, 2013

How long this underperformance of Indian equity and currency markets will continue?

Financial markets are constantly in a flux of movement and people are trying to trade based on their understanding of fair price. 
The volatility has increased drastically over past few months as the bigger trend has probably started on downside. Volatility can be a blessing or a curse depending on whether you are placed on the right side of the market or not. During such times it is important to look at various asset classes across the globe to see if a higher certainty or predictability is plausible using Intermarketanalysis.
 In physical markets where goods of essential commodities are being sold, buyers and sellers transact with a much higher level of certainty. For example, the price of Onions tomorrow will likely be close to what it is today, recently it has also started fluctuating more than the past norms but still most of the times the fluctuations are minimal. That’s because the law of supply and demand which are measurable with high degree of certainty. Thus, price equilibrium is reached between consumers and producers.
But in Financial markets, everyone thinks that they are trading the fair price but each one has its own way of calculating the same. Also stock markets are based on discounting principle and how the company should be performing in future. This requires lot of assumptions in the pricing model and everyone has the liberty to assume what they think is appropriate to derive the fair value.
We believe, the psychology of investors decides the trend in market and this psychology moves in form of patterns or wavesR.N. Elliott discovered that the stock market moves in recurring patterns that he called waves. He formulated the Wave Principle based on these wave patterns called Elliott waves.
BSE Smallcap index weekly chart
The above chart is published in Monthly update with crucial levels and expected path Smallcap can follow.
Elliott wave helps to forecast from few minutes, hours, weeks, months, years, decades or even centuries. Our Monthly report which shows forecast for Sensex, Gold, Reliance Industries that has been a big underperformer over past few years but might soon starts its outperformance , US – Dow Jones Industrial Average that made its life time high when India has been struggling andUSDINR which also touched life time highs. In India, it is currency touching life time highs rather than stock market. But the question to ask is How long this underperformance of Indian equity and currency markets will continue? To get the answer get an insight into the Monthly and Daily equity research report.
To subscribe to any of the equity research visit the store page http://wavesstrategy.com/index.php/store.html
Useful for: Elliott Wave traders, Market forecast, Currency traders, Positional traders
Related to: Elliott wave, Elliott wave forecasting, USDINR, Dow Jones, Sensex,Gold, Reliance,Inter market analysis, BSE Small cap Index

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