Bombay Stock Exchange or BSE Sensex is currently struggling with lot of speculation about the economic policy of the new government. But there is no sense of any negativity, rather enthusiasm after the left has been left out. But still there are so many things the Indian economy has yet to grapple with.
Yesterday, the finance minister presented the Annual Economic Survey: the highlights of the governments plan. Click here for exhaustive story and here for a brief outline of this survey. Overall, there is enough indication of focussing on improving the GDP alongside managing the fiscal deficit. But the top priority would the rural India (Read Story).
Short to medium term has been marred by the unpredictable monsoons and fuel price hike. The inflation may be too low on the charts but the reality is that the prices on the shelf are still rising.
Technically also, this index was overdue for a correction. The horizontal red lines given on the chart at 13650 and 12500 respectively, hold the key for this correction. Both these support levels could be used by the long term investors to buy. But a breach/close below 12500 would also threaten the previous lows also. Watch out!
So far, there is every indicaion that this index is back to business once again and every decline is an opportunity for accumulating your well researched sectors/stocks for long term investing.
