Today, the market has made a strong move. Today we will check FII activity—whether they turn net buyers or continue selling.
From the beginning of this market correction, I clearly stated that the market could find a bottom around the 23,000 ± 500 range on the Nifty 50. The market largely moved within this range because I expected DIIs to step in and absorb FII selling, thereby preventing a deeper fall.
However, my personal view was that the Nifty 50 could eventually reach around 21,600, where the PE ratio would come closer to 19. At that level, I expected strong buying from FIIs.
I repeatedly emphasized that the Nifty Smallcap 250 had already formed its bottom. This was the right time to start accumulating high-quality stocks. Even today, we can see a strong recovery in the Smallcap 250 index.
Two months ago, I mentioned that the market would crash before the start of a new bull run—and that is exactly what happened in March. Despite anticipating the market crash, we do not advise exiting the market during the final phase of a bear market. This is because recoveries from such levels are usually very sharp, and if you exit, it becomes extremely difficult to re-enter at the right time.
We typically exit near the end of a bull run, as that is followed by a prolonged and painful bear phase.
Unfortunately, many investors wait for further downside during a market crash instead of accumulating quality stocks, and as a result, they miss valuable opportunities. I have consistently highlighted stocks that showed strong relative strength during this crash—such stocks tend to outperform significantly during the recovery phase.
I have always maintained that no one can predict the exact bottom. Therefore, the right approach is to gradually accumulate fundamentally strong stocks during market crash.I repeatedly said since last 1 week that , the downside appears limited, while the upside potential is significant.
The downside in the Smallcap 250 index is negligible, whereas the Nifty 50 may still have a downside of around 1,000 points. Even if your portfolio is currently down by 20–25%, it can recover within a short period—provided you have invested in strong companies from emerging sectors.
We have built a strong portfolio throughout this bear phase by investing meaningful amounts in high-quality multibagger stocks. We will showcase our portfolio by the end of the bull market, where many of our members are expected to create significant wealth.
Many investors panic when their portfolios turn negative during market crash. However, during the final phase of a bear market, almost every portfolio is in the red. The key difference is that portfolios with fundamentally strong stocks recover much faster.
Retail investors often exit the market near the end of a bear market—mainly due to a lack of understanding of market cycles. Instead of investing more at lower levels, they exit out of fear, missing the upcoming bull phase.