Market Cycle or NIFTY Cycle

There are following Phases of Market Cycle or NIFTY Cycle:-

1. Optimism
2. Excitement
3. Thrill
4. Euphoria
5. Anxiety
6. Denial
7. Fear
8. Desperation
9. Panic
10. Capitulation
11. Despondency
12. Point of Maximum Financial Opportunity
13. Depression
14. Hope
15. Relief
16. Optimism

Above 15 Phases come in sequence order, from 16 phase it is repeated and come in order.
We can easily understand this Cycle form this graphical presentation:-

If we see the 5 years from 27 Dec 2005 to 27 Dec 2010 movement of NIFTY, then its clearly indicates that at which phase we are in present.

NIFTY in different phases under Market Cycle

From the above chart its clearly states that NIFTY is under Thrill phase or between Excitement and Thrill phase. It is sure that we will touch the new high in coming months. But after we should also prepare for next phases.