Is market near bottom or more fall to come?
Invest Aaj For Kal • 8 days ago
What This Video Is About
The video discusses the current market scenario, focusing on the correction and consolidation of the Nifty index, and the performance of small-cap and mid-cap indices. The speaker analyzes the reasons behind the correction, including rising crude oil prices, the Russia-Ukraine war, and the impact of Margin Trading Funding.
Major Ideas Discussed
- The small-cap index has started to correct, aligning with previous discussions and expectations, and has returned to its probable bottom level.
- The primary reason for the correction is the impact of Margin Trading Funding in the small-cap segment, which leads to a fall in collateral and subsequent selling of shares.
- The small-cap index has historically bounced back between its 50 and 200-day moving averages, and it is likely to retest its 200-day moving average.
- If the US market continues to bounce back, the small-cap index may also bounce back after a potential retest of its 200-day moving average.
- It is not recommended to stop SIPs in small-cap funds, and it is too early to invest lump sum in small-cap funds.
- Investors can consider investing in small-cap stocks with good EPS growth rates.
What to Watch Next
The speaker recommends monitoring the US market, the 200-day moving average of the small-cap index, and the performance of small-cap stocks with good EPS growth rates.