Have Bears Exhausted Nifty, Mid And Small Caps? Will The Market Rally From Here?

After a period of volatility, investors are asking if the bears have run their course on the Nifty, mid, and small-cap stocks. Is this the turning point for these indices? Amit Khurana, Head of Equities at Dolat Capital, shares his expert perspective.  According to Amit Khurana, assessing market strength solely through the index may be misleading, as the Nifty has corrected minimally relative to its overall rise of around 37-38% over the last 18 months. He believes that a further correction of 5-8% is possible, which could bring the index to a support level where valuations may start appearing attractive. However, this is contingent on the earnings results; if cuts remain moderate, the Nifty is likely to find support at lower levels.

In the mid-cap space, some stocks have experienced corrections as steep as 25-30%, following periods of significant gains and inflated valuations. Amit Khurana notes that while some stocks may appear attractively priced after recent corrections, it may not yet be time to jump back in fully. Instead, he recommends a cautious approach over the next 3-6 months, using this period to assess valuations and gradually allocate investments as markets stabilize. Watch this video to understand Amit Khurana's full analysis and what it means for your investment strategy in the current market landscape.