From bull to bear market: How to spot trends

In an interview to CNBC-TV18 Sudarshan Sukhani, s2analytics.com shared views on the market trend and how one should play it. 

Below is the verbatim script.
Sukhani feels that the government has done everything. There is no capital gains on stock markets and the stock equities. The securities transaction tax (STT) is very low, the short-term capital gains tax is negligible, corporate taxes are low.
The only option left for the government is to start to give money to every investor. The market does not works this way. When markets are cheerful, they run up without any help. The worst possible news gets discounted in two hours.
2013 is proving to be a difficult year. The point is what kind of year will we see from March onwards? Will it be a bull market or will it be different? To get to the entire thought process we need to know how bull markets behave and how they have behaved in India earlier.
So, I will look at the 1999-2000 bull market where prices doubled. The IT stocks were not part of the index and IT stocks doubled and tripled and increased 10 times. That period was roaring when people made a lot of money and stocks multiplied many times - that’s the nature of bull market, we had.
Every month, the prices are becoming narrower, the momentum is falling and the price range is contracting. For a technical trader, this is called the rising wedge which is a very bearish sign. My point is that the market should have flown. When a bull market starts, we saw how it doubled, how fast it rallies and then it stalls, doesn’t stop - that's not happening. The rally started and then stalled completely.
The last bull market's highs were at 6350, we haven't touched that. Where are we? For 12 months we are struggling, and hardly able to cross 6000. We are struggling in the zone of 5000-6000. The market does not way the market begins its upmove. It builds a base and then takes out the earlier highs, then pauses and consolidates.
One does not have to be right all the time. The chart pattern suggests that the eminent downtrend has started. That may not come about, the time when we realise that this is not working out, if the Nifty suddenly starts moving up, crosses 6350. That would make it into a lifetime new high. If the index makes a new lifetime high then we will become bullish and say the bear market scenario that we were discussing was wrong and something else is happening. But till then, I would expect this scenario to play out.
One should only follow this principle and mantra: I will not touch midcaps and will only buy blue chips. One will make a lot of money.