Reclaiming the Lost Grounds

For the past one week, the bourses worldwide, having surged more than 30 percent since March 09, 2009, have been struggling to hold on to their recently gained grounds. So far, it seems that the bourses worldwide are all poised to take off in a big way.

Be it the DJIA, the NASDAQ, the FTSE 100, the DAX 30, the CAC 40, the Nikkei 225, the Hang Seng, the Shanghai Composite, the Tel Aviv 100, the NSE 50, the BSE 30, all have surged like anything by more than 30 percent on the hope that the world’s economy is recovering from the Great Recession, and is bound to reap big returns in the near-term-to medium-term future.

Well, I have no doubt about this, as after every recession, the capitalist world strikes back even more vigorously than the pre-recession one to retain its lost grounds as quickly as possible. That’s the precise reason why the bourses have been running quite ahead of the market fundamentals. It’s not a wrong thing, as the bourses are meant for getting a hold on the future earnings at the least possible costs.

So, will the NSE 50 cross its 4730 barrier in the next couple of sessions, and will it cross 4850 in the next couple of weeks? I bet; it will. Just watch out! Go long.