Stock Index -- Wither to?

The Sensex has corrected 18.77% from the high of 30,024.70 recorded in early March 2015 and the Nifty is down 18.50 % from it's high of 9119.

There is no sign of any worthwhile recovery in sight and Sensex & Nifty is poised to hit further lows in the days to come. A fall of 20% in the index is considered to be confirmation of a new bear phase of the market and all technical indicators suggest that the bear market has commenced from March 2015. Many of us (including me) must be sitting  on loses and, may be, we will have to nurse our wounds for quite sometime. The markets can be

merciless and the best option available to investors will be to take advantage of rallies and square up whatever positions you hold (even at a  mall loss). The bull phase is likely to be a couple of years away and it

can be a big achievement if the Nifty is able to cross 8,200 in the calendar year 2016. In between, the market will throw buying opportunities and patience should be the watchword. Many frontline shares will be available at

lucrative prices and investors will be advised to keep cash handy to buy when the time comes. The market trend can be your friend as well as your enemy depending on how you approach it and how well informed you are about

the market trends and outlook. Till things improve, let's listen to this sane advice:

*"Investors making purchases in an overheated market need to recognize that it may often take an extended period for the value of even an outstanding company to catch up with the price they paid."*- Warren Buffet