I just read a report which claims that according to Technical Analysis, Indian sensex can reach 1,00,000 by 2025. Wow! Can this really be true? Well the opinions will definitely vary but I am quite doubtful.
According to Wikipedia, "Technical analysis is a security analysis technique that claims the ability to forecast the future direction of prices through the study of past market data, primarily price and volume."
Although this form of analysis can probably predict the markets very well but can it predict something which is 16 years away? What about fundamentals? What about the state of the country?
Technical Analysis can basically look at the history of Indian markets and make prediction based on reasonable assumptions which they make. But they probably have not heard the famous dialogue "It happens only in India!"! India is a country which has not been able to provide roads, electricity and clean water to every citizen, forget about providing education! India is a country where elections are still won by saying 'roti, kapda aur makaan'! India is a country where scams like Satyam are still happening!
If these factors don't seem enough then think about this, India is still short of power, companies don't get power and also pay higher price for it. Roads are pathetic, and cities are dying. The infrastructure is crumbling.
To me this seems impossible, but then lets see ... Miracles do happen and they do happen in India :)