Remembering the 1990's

 

Markets are natural beings, this is why patterns and market structure repeat. The ongoing structure on Nifty from 2009 has a stark similarity to the market structure from 1996 to 2003. Now this is conventional pattern watching much different from machine learning, but if the similarity is to be believed we are in for a larger bull like the one seen from 2003 lows. Since the current structure (2009-2012) is  a third of what we saw in 1990’s even a proportionate extrapolation can take us to Nifty 7000. And we should keep in mind that if the structures are similar, a large break of 4,700 can be ruled out.
You can read the complete article in Business Standard

Mukul Pal, is a Chartered Market Technician, MBA Finance and a member of the reputed Market Technicians Association (MTA). He has more than a decade of Capital Market experience dealing with derivatives and global assets. He has worked for Bombay Stock  Exchange, multinational Banks and brokerage houses in leading research positions before starting on his own in 2005. He is the President of the MTA Central and Eastern European Chapter.