Timing is very important in the stock market, but no one can predict exactly the date of the crash or the fall. Currently, the Indian Stock Markets are slowly reaching towards the levels where 2021 can be the year of the crash in history, I may be wrong or may become star predicting the fall! The market technical chart structure is quite and very similar to the levels of 2008. The reason for the fall of 2008 was also credit, with the emergence of technology and printing spree of the US Dollars only leads towards a market fall every few years. Even in these times of Corona, we see that the local economy is getting stressed out with mindless guidelines frames by careless salaried bureaucrats. Every country is facing tax losses but at the same time, we see Americans standing outside in queues for a piece of food. So those who see that the American Economy is a supreme leader is the only hoax, they are modern times colonial empire which is bound to fall and their own people will pay the price of their evil leaders.
Once our Nifty crosses 13566, we can easily see 14150 and further coming and the market will head towards its R3 on the monthly charts and then in 2021 probably we will see the fall. It may not be a single fall but gradual, Corona lead fall was all of a sudden and the panic sell triggered heavy fall, but the chart structure tells that the Corona lead fall was the only correction on the long term chart and that cannot be said as a recession. Today we see prices of everything going up, quality education is rare even after spending lakhs through loans, the job market is not in its full swing. Only a few sectors are getting the pie of the consumer spending and they are running the stock markets, but that illusion soon will be washed. Businesses who have taken loans are unable to do their business as usual to the experiments done through Corona guidelines, everyday something new will come up. Hospitality and Tourism sector will lead banks to take the heat of large NPAs making pressure to the whole financial chain. Food and Restaurant sector is seeing permanent closure of businesses.
Markets even after falling will reach new heights in the future, because as human beings we like to progress but the only reason for such market falls are excess credit in the system, bad loans, bad businesses, bad managements, every time Government have to take hit on the basis of taxpayers money and infuse more credit to save the system, jobs, markets and the whole economy. A post-Mortem will be done after the market fall, some books will be returned and again economy will be back on track, jobs will be on track and the history may learn some new events or some new theories. Hope for the best and pray for a better world and equivalent distribution of wealth among all.
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