Shailesh Desai

1. Lack of trust           The Indian stock market has had its share of past financial scams such as those involving Harshad Mehta and Ketan Parekh that resulted in many stock market investors losing their money. Some of the recent scams include the Nirav Modi scam and the Satyam Computers scam.           First and foremost thing which we hear from most of the people is hear of loss. We heard about people’s loosing stories only and due to that most of the surrounding people try to avoid investing in stock market. People invest in stock market without having proper knowledge, guidance or skill and they loose their entire capital which leads them to make others negative stating that stock market gives losses only. Though, with the establishment of the Securities Exchange Board of India (SEBI), stock market trading is much more regularized without any major market mayhems.           Hence, due to the...

Some of the important points to remember related to the Countrywise domestic investors participation rates in the domestic equity market: 1. Japanese are highly risk averse with households holding only 6% of their total assets in stocks compared with 33% in the U.S. and 15% in Europe according to the Bank of Japan. 2. Among the developed countries, Australia has the participation rate at over 40% and Belgium has the lowest rate at 5.0%.  3. At 26%, the U.S. has a high participate rate relative to most developed countries.  4. Emerging countries such as India and Turkey have very low participation rates.  5. Investors in Nordic countries trust the stock markets more than their European counterparts in countries like France, Germany, Italy, etc.  6. Rich households always have high participation rates. Poor and middle-class households always have lower participation rates according to one study.  7. The data shown in the above chart are for the period from 1997 to...

Technical analysts believe that investors collectively repeat the behaviour of the investors that preceded them. "Everyone wants to in on the next RELIANCE" "If this stock ever gets to around ₹900 again, I will buy it" "This company's Steps & Powerful Motto will revolutionize in industry, therefore this stock will SKYROCKET" "Wow JIO….!! De Dana Dan…!! Buy Reliance again & again at every dip if u got chance" – these are all examples of investor sentiment repeating itself. To a technician, the emotions in the market may be irrational, but they really exist. Because Investor's behaviour repeats itself so often, technicians believe that recognizable and predictable price patterns will develop on a chart definitely again & again. Technical analysis is not limited to charting & Indicators which shows you buy or sell signals directly, but it always considers price trends, Investors Sentiments & Market Conditions....