Finding The Market Bottom

Technical Analysis and Market Bottom

BSE Sensex is approximately 4 per cent down from its all-time high levels. Market stability is important for investors as stable stock prices encourage higher participation. With 2023 starting on a volatile note, it will be interesting to understand if there is further downside in the markets and most importantly what the market bottom in 2023 could be. Yogesh Supekar highlights the various ways one can identify the market bottom 

Why buy now when you know the stock prices will or let’s say may come down? It is observed that investors often hesitate to invest when the market sentiment is weak and when there is a probability of market correction. Market sentiment is perceived to be weak when the stock prices fail to react to positive news. In December 2022 and even in January this year so far, the macroeconomic news flow has been positive, both locally and in the US and yet the BSE Sensex has slipped by almost 4 per cent since December 1, 2022. The last two months may have confused several investors as the market slipped despite positive data.