Everyday when you watch TV for Financial news you specially hear couple of terms very frequently aka Fundamental and Technical analysis and today I would try to explain them in very newbie’s terminology for every one to refer to.

The year 2009, for the stock market investors will be a year different from 2008. This New Year 2009 is expected to be a year with two unique trends. The first trend deals with consolidation during the first half and the second trend is about building on that consolidation.

The Stock Market Indices serve varied purposes starting from economic research to helping investors decide upon an appropriate portfolio for their investments. As said earlier, since the Index is an indicator of the overall mood of the investors in the secondary market, it also helps a company answer questions like is it the right time to take out an IPO, how to price the issue, etc.

The market is going through a roller –coaster like situation. Since past six and a half months, the Sensex has gone up by over 200 points on 31 days and fallen by such margins on 33 days. There were eight days when it jumped over 500 points, but there 11 other days when it fell by this huge margin. This also includes events with nasty dips like the one in January when it fell by over a thousand points and then few days later it soared by over 800 points.

But still it’s dangerous time to open a buy right away and go about it slowly because if the 4450 breaks which should turnout to be formidable support at least for some time from now it could turnout to be a strong support, one cannot say for sure right now.

I personally believe that the support will not break on a closing basis and that would make more buying coming in when volatility goes down. Now in such a market turmoil what is the best investment strategy.

Typically bear markets are associated with economic contractions, recessions, high unemployment, low export and high inflation.

Nifty is an index or an indicator of the performance of the companies listed in national stock exchange situated in delhi. Nifty constitutes of 50 companies and the change in the Nifty index ( Up or down ) indicate the trend in the majority of the stocks.