Bullish means positive or upwards movement. If an investor says he is bullish on the stock market, it means he expects the market to rise upwards.
The name of the animal ‘bull’ is used to suggest a positive or upward market because the ‘Bull’ attacks its opponent by raising its horns up in the air. The bear attacks by pushing its head down, the movement of attack is downwards.
When you read the words ‘bullish’, it’s important to understand the context.
Some quotes you might hear on news channels or read in news papers:
When an analysts says “I am bullish on Reliance Industries” it means the analyst is positive on the business prospects of Reliance Industries. In most cases, these are long term expectations that Reliance – because of Jio and its retail business – could perform well over the next few years.
“Analyst Mahantesh Sabarad is bullish on Auto, IT sectors” this news was published on Times of India today. This means, the analyst is positive on the Automobile and Information Technology sector. This news can be understood as a ‘short term’ to ‘medium term’ bullishness. So the analyst is asking investors to invest in these two sectors for the near term.
“Bullish on Nifty for 2020” You would probably get to hear these statements at the beginning of the year. This means, the analyst expects the NIFTY 50 to do well in the year 2020. A 10-15% growth in the Nifty index for a period of one year is considered to be good returns.
“Mid caps and small caps were in a bull run in 2017” when you hear this statement, it means the smaller companies (mid and small caps) did very well in 2017 and performed better than the large cap companies.
“The chart of Bajaj Finance looks bullish” when an technical analyst says this, he is trying to convey that according to his chart analysis, he expects the price of Bajaj Finance to rise further in the next few weeks / months.
“I am bullish on India’s growth story” investor Rakesh Jhunjhunwala has said this many times in several interviews. He’s saying that he believes India has tremendous potential for growth in the next few years / decades. Such statements are very long term views. If India grows economically and becomes a 10 trillion dollar economy, the stock market will also follow and create a lot of wealth for investors.
The term ‘bullish’ can be used not only for the stock market, but any that can rise in value. Like Gold, Real Estate, Global Economy or even Bitcoin.
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