Sensex at 20,000: What will be the Next Move?

Sensex at 20,000: What will be the Next Move?

The Sensex is just below the psychological level of 21,000 (It is 20,165). It is the almost 33-months high level. Many people ask me that, what will be the next move of Sensex? Weather the Sensex will go up this Diwali or not?

Well, I used to say people in the past that nobody can predict the next movement of the Sensex or any stock market in the world because nobody has the crystal ball.

But well, now the scenario is different. The Indian and other countries stock markets are now become the capital inflow/outflow oriented markets.

I mean the levels of the Sensex are now no more the profit of the businesses related. But it is a purely capital inflow related. Yup. The more capital from the foreign countries (mainly USA) will enter into India, the more it will shoot up and when we will see capital outflows, it will be go down.

Since past 30 months, the US Government has printed literally US $ 1.2 Trillion out of thin air and shoot up its monetary base from US $ 800 billion to $ 2 trillion.

And this newly printed money is flooding in the emerging markets like India and China and shooting up the Sensex to sky high.

And unfortunately, RBI and government of India is not regulating or controlling this capital inflow like other countries such as Brazil and Thailand. So in my opinion, The Indian stock market will see the new highs until,

01) The US Government won’t stop printing more money and/or

02) The Indian Government won’t control this tremendous capital inflow which is actually the printed money out of thin air.

The rules of money have been changed now. Now, the money is not backed by gold anymore (After 1971) and that’s why the central banks and governments from all around the world can print any amount of money.

Anyways…So let us see in the coming future that weather the Sensex will show us the new highs or not?….!!!!