Can we now say that Nifty and Sensex are in bear market or do we need to wait for more confirmation?

A bear market is defined as one in which the markets corrects by 20% from the recent peak and there is all round pessimism in the stock markets. To an extent, that is done because the Nifty has now corrected nearly 22% from the peak of 12,326 on January 14. There is also pessimism all round in the markets and you must remember that even the Dow Index, the CAC of France and the DAX of Germany have officially entered bear market territory. However, a lot would depend on how the next few days pan out. In 2011 and again in 2015, the markets corrected a little over 20% and then bounced back with a vengeance. The last major bear market we had was back in 2008. Already valuations have become extremely attractive and hence you could see the markets bouncing back once the Coronavirus comes under control. For now, it is hard to say with certainty but the next few weeks will be crucial for the Indian markets.