Wednesday, March 23, 2011

India Sentiment poll analysis: Extreme bearishness

Today ET gave results of the Survey  Is the market likely to correct in the near future? Link Here.

The results were Yes : 65% No 29% Can't say 6%.  They have not given the sample size but if one read the comments (there are 4 only) then the sentiment is extremely bearish.

So lets see how much % age is truly bearish. We can remove the Neutral 6% to arrive at correct number.
The Bullish % age is 29/94 = 30% while bearish is 65/94 = 68%.

Well the bearish %age at 68% which is just bordering the crucial 70% and above of extreme sentiment reading.

These kind of near extreme readings for sure changes the trend for some time.

I just wish we have more direct survey like these to gauge the market sentiment which is a crucial element to Technical Analysis. US has whole lot of indicators just based on survey like these. More here.

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