Indian stock market: Will the stock market reversed again this month? What does history say?

Indian stock market: For the first time in March on Wednesday, the stock market index shines in green. Almost all regional indices have made profits. Investors have hoped that good days are coming in the market. There are many examples of rebounding in the market in March.

10 days in a line.

The Nifty 50 abolished the last 10 trading sessions in Red. The loss has been done in 10 consecutive sessions since 1996. The Nifty price decreased by 4% in these 10 days. The Nifty 50 was last declined in 10 consecutive sessions from December 28, 1995 to January 10, 1996. The Nifty 50 has turned red for the last five months. This is a very rare incident.

Because of foreign investors.

Since October, foreign investors have withdrawn Rs 3.32 lakh crore, leading to a decline in the market. Earlier, foreign investors returned Rs 3.8 lakh crore between October 2021 and July 2022. As a result, 10.4% of the Nifty 50 was corrected. In September 2024, the maximum level, the index fell 16%from 26,277. This was the sixth biggest decline after 2008–2009 Great Depression. The second largest collapse after the collapse of Kovid in March 2020. International trade stress increased and weak domestic signals of investors further damaged emotion.

Tariff war

Trump has launched the US in various countries after taking charge as Trump as the President of the United States, also negatively impact on Indian markets. Donald Trump confirmed on Monday that 25 percent of tariffs on Canada and Mexico have doubled 20 percent tariffs on sugar imports. China and Canada have announced a revenge tariff. This has increased the possibility of a new World Trade War. The Trump Tariff Declaration also expressed concern that such action could be taken on India next month. This has expressed another concern for the markets.

Will you rebound in March?

Investors hope that the markets will be rebounded after the stock market reaches the minimum after the stock market. In strengthening this approach, domestic brokerage company Axis Securities said in its report that it was historically a strong month for the market recovery and average 1.7% since 2009. (With exception to 2023 fall).

Axis security analysis

According to brokerage company Axis Securities Analysis, Nifty has not yet recorded a decline in the price of six -maiden in the history of Nifty. Therefore, there is a possibility of rebound in March. In the years ended with odd numbers such as 2025, the stock markets have shown a strong performance in the years after the US presidential election. The brokerage company stated that the Nifty increased by 75% and 83%, said 17.1% and 21% respectively, the brokerage company said.

In the support sector

The Nifty has now entered an important support area defined by the 100-week moving envelope (+/- 3%). Apart from serious events like Kovid -19 crash, it has historically excessive degeneration. This indicates that there is no possibility for the rebound of the market. The brokerage company said that six out of 11 sectors were sold on a 14 -day RSI basis, and all areas were trading less than the average of 200 -day movement. In addition, NSE 500 index are trading more than a serious low, 7.6%, 6.2%, and 10.1%stocks respectively than 50-, 100- and 200 days average. Axis Securities states that these levels are comparable to people found during the Kovid crash.

For Bullish trigger ..

“The atmosphere of the existing market displays signs of high pessimism and fear, however, however, the clear rapid trigger has not emerged yet (this is important), historical models, technical indicators, are close to the market at the bottom of the market,” Brokerage said. Therefore, the Nifty has advised investors to allocate some long capital between 21,700 and 22,000. “Although most of us can find the right pie and cannot catch below, prudent investment depends on taking advantage of opportunities. Especially when emotion is very arbitrary. Such an opportunity has now come.”

Reference: The views and recommendations given in this article are individual analysts. These are HT Telugu Do not represent opinion. We recommend investors to check certified professionals before taking any investment decisions.