Saturday, 29 August 2015

Is there any further fall left in the stock market after the crash in August, 2015?

It is difficult to predict the market movements, especially in such volatile atmosphere where markets across the Globe have witnessed extremely volatile sessions.

For example, on August 24, 2015, NASDAQ was hit by lower circuits in the initial trading hours, then it recovered sharply to erase all the losses of the day, and fell again. All these wild movements, in one trading sessions.

Following is an image showing Nifty's next day's movement, whenever it witnessed a major crash, historically.

There's isn't proper correlation that can be developed here. 

Similarly, it cannot be said with surety about any further crash or major recoveries in the market.

A lot depends on how the world markets trade in coming days, but yes, for the time being, the mood in the market isn't very strong. Indices continue face selling pressure as of now. 

At the same time, India's macro-economic condition is in a much better shape than the Chinese or some other ailing economies that might have an impact on the world financial markets. We're better prepared for any shock that the world markets might have to throw at us.

Still, let's wait and watch, and hope for the best.

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