Is there a Bubble formation in stock market.?

Sir but patern looks similar...

1 Like

Bubbles are usually formed in the market when there is a huge frenzy amongst the retail. Just because we are at an all time high doesn't qualify the markets to be a bubble. The true indication of a bubble is when every tom, dick, and harry wants to invest in the markets. 

Above is a google trends graph for keyword "Nifty" in the Indian region. So this is basically a graph of the people searching for words with Nifty on google, which should kind of also help figure out the retail interest. People will search only if they are interested. 

2007-08 was a bubble, but can you see 2014 on that graph, yes there is a small trend upwards but nothing like 2007-08.

So are the markets overvalued? It is debatable. 

Is it a bubble? Definitely nowhere near it yet. 


As you know nifty doubles every 3.5 years. So from now it can go upto 20000 in 5- 6 years, wow…

Happy investing

And I should add that if you want to invest, invest now…!!!

Ekansh , Invest but where exactly … a new kid like me doesn’t know much.

Hey Zaid, the images that you have shared is the price chart, bubbles are not formed just because the price has gone up. That way, Infy has been in a bubble for the last 2 decades, because price more or less has continuously gone up. Bubbles are formed when there is a sudden uptick in retail participation, what I have shared below is the number of people searching for a stock market index on google.

Oh :-P… Thank You NithiN Sir now it’s clear…

Nice to know that. Thanks Nithin!

Thanks for the info NIthin… :slight_smile:

You can invest in stocks for long term. You should read balance sheet of as many companies as possible.
By reading balance sheets you can know if stock is costly or cheap and many other useful information.
For example suppose you are buying a bike for 2 lacs and you are getting 1 lacs cash free with the bike. Then the actual cost of bike is only 1 lacs.
Thus if balance sheet of the company is showing cash of Rs.5 per share and stock price is Rs.10.
Then the actual stock price is only Rs.5 as you are getting Rs 5 free at that moment.
So reading balance sheets can uncover many things.

Ekansh, Oh , Now I knew , much thanks …