Last few months I am talking about profit booking at the index level, over the last few weeks, index starts showing the same. This isn’t because I had some insight into what the market was going to do. It was a call based on common sense & various technical factors. Retail investors and traders were the only ones seriously buying stocks over the last few weeks. On the other hand, FIIs, domestic funds, and proprietary traders (i.e. brokers) had stopped buying stocks. Many were selling.
So the market was running on just one engine – the retail crowd. This was enough to keep the bull market going as long as the selling pressure did not intensify beyond a point.
Has the Situation Changed?
We will know over the course of this week. Or perhaps we will have to wait a while longer to call this a meaningful correction.
We will soon find out if the market changes direction and continues its upward momentum or if the bears finally take control for the first time since March 2020.
My 25 Years of take way?
Don’t be afraid of investing in stocks & Mutual Funds because of a market crash, dear reader. It’s part and parcel of creating long-term wealth in the stock market.