Have we reached the bottom? If I know for sure I won’t be blogging, but the history say so and the history repeats by itself. See the sensex chart. It has touched the 200 days simple moving average and bounced back sharply. Not once but more than 7 times since 2004. It is hovering in that region now after the recent crash. If the trend is intact then one will not find a better time than buying now.
Now, How to make some money? If you see the sensex heavy weight (Reliance Industries) it is mirror image of the index. So if you see 2275 – 2350 this week buy small lots of reliance (what is a small lot?) That depends on your financial strength. The stop loss for that will be close below 2200. If you are right then let the profit roll.
