The question everyone is finding an answer is "how deep this correction will go and how long it will continue" Though no one has any definitive answer to this question I am trying to do some analysis for my own investments.
So far we have corrected about 8-9 % in Nifty from the top and that is a very flattish correction. Normally we get over 10 -12 % correction every year and in some years it could go to even 20 % from the top.....so some more correction is possible particularly when the new Corona variants are raising their head all over the world and the event of Fed tapering is upon us.
The upmove was from April 2020 to October 2021 so 19 months so the normal correction will take 4-6 months timewise ( we just did 2 months so far ) .Experience so far shows that when an expansionary phase starts the central banks start tightening the liquidity after about 12 to 15 months. Whenever central banks have tightened the liquidity in past there is a knee jerk reaction for next 3-4 months and the FIIs,leveraged investors sell and the market comes down....so that phase is going on and will continue for 3-4 months more....after that the upmove resumes and continues for some more years....so we have to trade this bearish phase for 4-6 months more before there is a sign of any upmove.So the market will continue its meandering downmove for some more time in my view as the correction has do pricewise and timewise completion. I am buying in large dips but in a controlled way knowing fully well that we have to endure this correction for 3-4 months more and 5-7 % price damage more......
Investors may do their own analysis before taking any investment decisions.....
Trading Futures: Indices Vs Individual Stocks