I will be on Bloomberg-UTV on Tuesday 9 AM, Thursday 9 AM and Friday 3 PM.
The Nifty is now in some kind of a correction. In my reckoning, the Index needs to close above 6150 to suggest that the correction is over.
Corrections are inevitable, just like death and taxes! All markets correct, therefore investors who want to put money in the market should always wait for a correction before buying. What actually takes place is just the opposite. Newcomers in the market rush in to buy when theree is frenzy in the market - usually at the top.
Now, is this a correction? No. A correction should retrace at least 50% of the prior move, which gives us 6300 - 5300 = 50% of 1000 points, around 5800. (all numbers rounded off). A more realistic measure should start from 4900 which is the point from which this leg of the uptrend started. That gives us 6300 - 4900 = 50% of 1400 points - 700 points, bring the Nifty to around 5700.
I cannot say if the current down move will lead to such a correction. But a correction of this magnitude will come, time unknown.