The Indian stock market has been termed as a potential “baby bull” as the Sensex may continue to advance over next 15 years and is likely to retain its all- time high level of 21,000 during the period, a report says.
At a time when developed markets across the world are in a bearish phase, a technical research report by US-based Elliot Wave International has termed India, Taiwan and New Zealand as potential “baby bulls”, while stock markets in Japan, Singapore, Hong Kong, China and Australia are going to be under the “bear” grip, the report stated.
The report has analysed that recent sharp reversal rally in Indian market, post the October 2008 lows, points at regaining earlier high levels.It added that if the rally continues in the same proportion as between 2003 and 2008, “the Sensex may continue advancing for 15 years before reaching the end of wave”."The potential baby bulls completed only three waves down from their respective highs, which makes them strong candidates to rally back to at least near their all-time highs , if not beyond,” the report stated.
Sensex had touched all-time high of 21,206.77 points on January 10, 2008, since then it plunged even below 8,000.The report stated that Sensex would now embark on third wave which could see the index witnessing a multi-month rally, although share prices may come down for short periods.