India’s equity markets may be approaching a bottom after a sharp correction, with analysts suggesting investors begin cautious accumulation rather than waiting for the perfect entry point.
Benchmark indices like the NSE Nifty have recovered from recent lows near 22,200, sparking debate on whether the market is entering a recovery phase or just pausing before another decline. Overall, markets have corrected over 15% from their peak, with mid-cap and small-cap stocks witnessing even steeper falls.
Signs of a Possible Bottom
Market experts believe that selling pressure is beginning to ease. According to analyst Kiran Jani, several indicators point towards a potential turning point:
- The India VIX rising above 25 signals “peak fear” among investors
- Technical charts show bullish divergences, indicating weakening selling momentum
- Strong support has formed around the 21,700 level after previous gaps were filled
These signals suggest that the worst of the correction may be behind, although volatility could continue.
Don’t Time the Market, Accumulate Gradually
Instead of trying to predict the exact bottom, analysts recommend a staggered investment approach. Gradual buying at current levels can help investors average costs and reduce risk.
Jani advises focusing on data and trends rather than reacting to headlines, especially amid global uncertainties like geopolitical tensions and trade concerns.
Key Levels to Watch
A sustained breakout above the 23,000–23,200 range in the Nifty could confirm a stronger recovery trend. If this happens, markets may target higher levels in the coming financial year.
Strategy Going Forward
Experts suggest sticking to a buy-on-dips approach, especially in quality stocks, while maintaining patience during market fluctuations.