In the end of 2008 India’s stock market hit bottom, finishing its correction of the rally form 2003. Since then there has been a strong, non-overlapping movement to the upside. The chart below is a classic example of the fractal nature of aggregate stock market price movement. We are identifying a series of 1s and 2s, which suggest for a long-term aggressive movement to the upside in wave (3). This gives us a multi-year uptrend opportunity. The classic strategy “buy and hold” can be applied in this case. India’s BSE SENSEX index should be listed as the number 1 financial instrument in every investor’s portfolio.
The BSE SENSEX index (Bombay Stock Exchange Sensitive Index) is a free-float market-weighted stock market index of 30 well-established and financially sound companies listed on the Bombay Stock Exchange. The 30 component companies which are some of the largest and most actively traded stocks, are representative of various industrial sectors of India’s economy.