Market Preparing for 50% Correction From Recent High ?
Sentiment around equity investment has taken an adverse turn lately. Though the Nifty has fallen 6 percent from the top, the pain of this fall is more than what this headline correction number shows. This is due to weakness in the already falling smallcap names since the beginning of this year, along with a sharp fall in certain pockets of the market. So, is it time to buy as time of maximum pessimism is the best time to buy? We need to be very careful in picking stocks as wrong selection can be highly damaging. If you look at the market rally from 10600 to 11800 in just 2 months with the help bluechip names like Reliance, Tcs,Infosys,Bajaj Finance,Hdfc, Hdfc bank, Indusind bank, M&M, etc and other all nifty stocks correcting more than 20-30% so one has to understand the reasons behind this short term rally which is mutual funds are buying this few stock to maintain their portfolio strong and nifty positive to dump other weak stocks at decent price and one of the most impo