InvestorQ : Do you see the Nifty touching the low of 7610 that it touched on March 23, 2020? How low could the Nifty go from here on?
indhumathi Sayani made post

Do you see the Nifty touching the low of 7610 that it touched on March 23, 2020? How low could the Nifty go from here on?

Answer
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shrinidhi Rajan answered.
5 months ago


It is hard to say because it largely depends on how the macro situation pans and how soon the lockdown is lifted and business gets back to normal. In fact, global star investor, Mark Mobius, believes that while another correction is entirely possible, it may not touch the lows of 7610 that it scaled on the 23rd of March. There are a number of reasons apparently. Firstly, earnings numbers could still be under pressure investors may get disappointed by the weak earnings and choose to sell out. However, the kind of panic selling in March was unlikely according to Mark Mobius. Most violent bear markets, except in structural exceptions, normally correct on an average at around 30%. That was more than done in March and hence Mobius believes that the bottom may have been already made in the market. However, Mobius does not rule out another correction of about 10-15% from current levels. Any downsides beyond that do look to be unlikely.