HISTORY REPEATS ITSELF – NIFTY BOUND TO BOUNCE BACK

CORRECTIONS ARE TEMPORARY, BUT GROWTH IS PERMANENT

The current correction has been fast and furious with a steep dip with Nifty witnessing an erosion of 36% till now from the peak of 12430. But on the brighter side, the past history has proved that whenever the index has fallen by more than 25-30%, it has recovered strongly to yield high returns in the next 1-2 years.

We need to follow this principle and pickup the front line stocks which have eroded decently in the last two months. We may see still more further downside movement in the coming days, but it would be advisable to start accumulating some of the best stocks which have witnessed much erosion.