We have had a decent correction from 26200 to current 24350 kind of levels, which is around 1800 points plus on the Nifty. Overall it looks healthy sort of correction because it has been the grinding kind of correction for most of the downtrend with ocassional bouts of panicky selling. These kind of corrections are good for future upmoves.
Although truth be told, I have no idea how low this can go. But as mentioned previously multiple times, corrections offer chances for course corrections at portfolio level. If you feel that there are some laggards in the portfolio, they can be replaced by companies with good prospects. This also happens to be results season so one can look at results, evaluate them and take a call.
If we have to panic, it has to be very early in the course of a correction, otherwise after a couple of weeks its often too late.
The silver lining to these kind of corrections is that after such corrections, some or other sector starts its sectoral upmove and we have to be on the lookout for which stocks are showing rebounds faster and stronger and cross key resistances on the way up. Those often tend to be the big winners in the next round of sectoral moves.
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