“We did a backtest to check what happens one month after the index closes for 8 or more consecutive negative sessions. Since 2002 there have been 9 instances of eight or more days of consecutive negative closing. The index closed on a positive note one month later in 6 out of these 9 instances,” Samco said in a note.
Today, Nifty recorded its longest losing streak of 10th consecutive fall. The headline index has fallen by 16% from the September lifetime high 26,277.35. This is now the sixth-largest drop registered in Nifty since the 2008-2009 great recession and the second-largest since the Covid-led crash in March 2020.
March seasonality also supports Nifty which has ended in the green on 7 occasions in the last 10 years.
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Nifty ended today at 22,082, down by 36.65 points or 0.17% over Monday's closing.
February was also the worst month for the Nifty since Covid as it witnessed a monthly fall of 6%. Out of 20 trading sessions it closed in the red in 18 sessions.
Much of the weakness has been on account of massive selling by the Foreign Institutional Investors (FII). Today they sold Indian equities worth Rs 3,405.82. For the year-to-date, this amounts to Rs 1,29,290 crore.
Notwithstanding the excessive fear and pessimism at play, the current fall offers an opportunity to investors to allocate some long-term money between 21,700 - 22,000, says an Axis Securities note.
Also Read: Silver lining in Nifty's 6th largest drop since 2008-09 recession: 8 reasons why it is nearing bottom
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