Crises Crises Crises…?When are we going to revive from it

Again, the fears of PGIS (Portugal, Greece, Ireland and Spain) seems to have been resurfaced again with the advent of the recent China and then Ireland crises which erupted the global fears and impacted the Indian economy as a whole. Presently also we are witnessing the sharp downfall in the Indian stock market because of the above two crises which finally erupted simultaneously casting a spell on it. Technically the sentiments of the markets had been very strong but the global factors have forced the market to test the levels of 5825 which we ourselves had not imagined before. The sentiments of the strong Bull Run were built up with the advent of the ‘Diwali’ season that the market would be moving up higher to test 6500 levels in the later stages which now seems to be a distant mark to achieve at this very point of time when our economy itself is reeling under the severe global threat. Such firm had been an impact the market seems to have been stranding over the 5900 marks and even the 6050 levels seems to be difficult to achieve. Technically, the NSE Nifty had formed a strong upward sloping pennant signifying that the break out was on its why, but this breakout would make its way southwards was unimaginable.
And now is the outbreak of the Korean crises which are resisting the markets to move at the higher levels. North Korea's deadly shelling of a South Korean island on Tuesday rattled global markets, prompting investors to sell stocks and seek safe haven in the US dollar, gold and government bonds.
The euro, already soured by Ireland's debt crisis, accelerated its decline as investors feared a rescue package for Dublin may not stop problems from spreading to other indebted euro zone countries.
So currently NSE Nifty seems to be in the mode of the breather and global markets needs to get stabilized in order to give a boost to in Indian Stock Market as well. However, the Indian Markets are not witnessing any direct impact globally but it is just the liquidity constraints which have constricted the scope of the markets to go at the higher levels. Right now, with the rupee, euro weakening, all the investors are have shifted their investments towards the dollar denominated bonds and securities pouring out the money from the Indian markets.
The global sentiments don’t seem to have subsided yet and we may witness forthcoming trading sessions rough for the Indian markets as well. From my point of view, we are still residing in the correction mode right now and some hiccups may also be witnessed in the later sessions to come. A rampant move is unexpected unless NSE Nifty breaks off its 6100 mark. So, current situation seems to be opportune enough to take your long positions for a long term perspective in mind.