Wikipedia tells us:
A bear hug is a strong, hearty embrace, as if being hugged by a bear.
While the world is not collapsing, the financial environment is certainly getting worse. Investors are naturally becoming more 'risk averse'. Equity which carries high risk, is no longer the flavor of the season. This period is going to last for some time, till equity investment becomes more attractive than debt (and less risky). Yes, be assured, such a time will also come.
How do bear markets end ? This is a repetition of a theme discussed earlier, but here goes:
Bear markets end when the 'public' gets pessimistic enough to forget about shares. This has not yet happened.
What can happen to the Nifty ?
The Index has broken down from an eight week trading range, setting a target of 3800 - 3850 for itself. IF, and, this is a big 'IF' - the 3800 support breaks, then we have a free fall to whatever number the market likes. There is no support below 3800.
The preservation of capital is much more important than trying to make a few points in the market. Take care.