Is market near bottom or more fall to come?

Invest Aaj For Kal • 8 days ago

Original source

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.