I came across an interesting Theory from a stock market veteran. If you believe that experience counts, then read on.
It is believed that the Markets have a tendency to go up for 5 years at a stretch. After which, Down Moves become more powerful and likely. It has something to do with Debt Cycles, which too is a very interesting topic.
Last Up TREND in Nifty started in 2009, post Lehman debacle. 2013 will mark the end of this Five year cycle and it will coincide with General Election. In this Up Trend Nifty has touched reached a high of 6330 from low of 2250. This has been a solid run. Now, its time to see the dark side.
The one before that Started in mid of 2003 and lasted till end of 2007, around 4.5 years. Followed, by one year of sharp recovery caused by Lehman crisis.
I have always been a strong proponent of buying only at steep corrections like the one we saw in 2008. In fact, I have mentioned on this thread, time and again, that I won't be too keen a buyer till Nifty touches 2011 Low of 4500. I am 100% sure that Nifty will touch this figure, it is only a matter of time.