Why Indian Market is Not Falling in spite of Cyclone/ Highest Inflation and COVID cases?

 18^th May 2021

Why Indian Market is Not Falling in spite of Cyclone/ Highest Inflation and COVID cases?

Dear Fellow Travelers,

Namaste! I often get the questions – when will the market fall? Why the market is not falling? The biggest surprise came when the cyclone hit India yesterday and BSE moved up the most by BSE 850 odd points and NSE by 245 points. The questions are real. Let us try to understand the market ground realities.

Retail Investors: -

Today Retail investors form part of 45% of daily volumes. FIIs are 11% / Domestic guys 7% and Proprietary Trading is 25%. It means if the volume is Rs.60000 Crs, then 45% is contributed by the Retail Guys.

This is the highest ever RETAIL participation in the market history.

India VIX Index Down: -

VIX is a FEAR index. It means more the FEAR – more the Index and Lower the FEAR lower the INDEX.  It touched around 20 yesterday. It means – the market participants have the lowest FEAR of market falling now.

Just to give you the perspective of FEAR, VIX was 63 in March -2020. So, we had a huge fall in MARCH -2020.

Why FEAR is not at the highest in spite of such a BAD condition?

Thanks to COVID and Government policies to support Corporates in 2020 and 2021, retail people have been badly affected. Many have sold GOLD to support their family or medical expenditures. Many have taken loans from their relatives to run their show without salary or income in last year and this year. It means they have nothing to lose. When you have nothing to LOSE – you have NO FEAR. SIMPLE.

Have you seen JAB WE MET movie? When the HERO comes back and gives his speech to the board members he says – APNI HALAT BAHUT KHARAB HEY. SAADHI TO BAND BAJ CHUKI HEY. ISSE BURA AUR KUCH NAHI HO SAKTA. AB ACCHE HI HOGA.

Share market and commodities market were open worldwide in spite of COVID last year and this year. This is the only thing where something can be done to earn money. So, whatever they had left – they started investing or trading in the market.

Retail guys have only one mentality – if they don’t do anything to earn, they are going to die. So, why not TRY their luck in the market and take a chance.

When a guy with Do or Die mentality comes to the market – VIX will come down without fail and the market will move up further.

What BUGS me?

What SMART guys do in the beginning; Normal Guys do in the end. This is what is happening in the market now.

If I share my observation from the financial side – be it life Insurance / Mediclaim / Water Purifiers / Air Purifiers / Investment consultancy / Astrological Guidance / Vaastu Correction in their house – they have to be SOLD to them. They have to be convinced that they are going to DIE someday or will be sick someday. They buy the insurance and other above-mentioned services as if they are doing favour to the opposite guys. They approach the respective Sales persons/Consultants/agents only when they have nothing else to do.

Normal guys have no SENSE of URGENCY in the beginning. They have SENSE of URGENCY at the LAST MOMENT. In NATURE there is no SENSE of URGENCY. It flows at its own speed. So, Kid comes after 9 months only. Whether you plan a kid at the beginning of your marriage or after 5-7 years. Then they start blaming Society / System / Government / Luck / God and things like that.

NOBODY can help them at the last moment. Not even GOD.

Today NEWSPAPER says – BILL GATES resigned from the Board of Microsoft for his affair with the employee before the investigation gets over against him in 2020. He is SAFE and the company is also safe now. We need to learn a lot from the TOP guys.

If you have these habits – change them. Do all the above things when you really DO NOT NEED. Because when you NEED, you will have NO MONEY to pay for them!!

What is My CALL for MARKET?

From 2020, I have been telling all my readers that 2021 is going to be a TRADING MARKET. So, don’t think about LONG TERM and other styles. TRADE and ONLY TRADE.

If you need professional help in investing or personal destiny management, you can approach us.

Read and reflect on the above.

Follow me on Twitter @hiteshmparikh / WhatsApp - +91-9869425399.

Live With Passion…Invest With Passion.

Hitesh Parikh.