As we all know Kübler-Ross model ,written in book “On Death and Dying”, describes five stages process to deal with catastrophic loss in life.
We have had same stages for world economy drop down to what we say is “Economy Crisis”.
Following are the stages for Indian Economy:
1. Denial (Jan 2008 – Sept 2008) : Markets surprisingly resilient in face of recessionary pressures.
2. Anger (Sept 2008 – present): Dalal Street throws tantrum; markets crash.
3. Bargaining (Summer 2009): Bear market rally.
4. Depression (Fall-Winter 2009?): Sensex/Nifty will give back most of gains from rally; sits near 15-year lows as volatility and volumes decrease.
5. Acceptance (2010?): Market finally capitulates; Sensex/Nifty will rebound to an historically sustainable valuation of perhaps 16k points.

Note: The worst is that we appear to be in only the second/third of five stages of grieving and you can pretty much project the path the markets will take until the healing process completes itself. So, In third/forth phase real investors should start buying good stocks for 2010 rally.