Should You Buy Smallcap Stocks in a Bearish Market?

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  
Top Ad

Find Out

How to Find One Stock with Crorepati Potential? >> READ MORE

  • Home
  • Views On News
  • Jun 23, 2022 - Should You Buy Smallcap Stocks in a Bearish Market?

Should You Buy Smallcap Stocks in a Bearish Market?

Jun 23, 2022

Buying smallcap stocks in a falling market is the last thing an investor wishes to do.

The Small-Cap index hit an all-time high (ATH) of 12,047 in January 2022 and corrected over 30% from the high. Whereas, the NSE Nifty has corrected close to 18%.

During the bearish momentum, fear leads to more sell-off in smallcap stocks.

The small-cap index is trading at a support area of the trendline, and the moving average indicates the best investment opportunity.

Small Cap/Nifty50 Ratio Chart

 

This is the ratio chart of SmallCap/Nifty50. The ratio going higher means smallcaps are outperforming against Nifty50 and vice versa.

The ratio broke out of iH&S in 2021 and I did a short video on that back in April.

The ratio has retested the breakout of iH&S indicating this is best time to buy smallcap stocks in the market correction.

The bullish divergence on RSI signals a reversal.

Investors should look for fundamentally strong smallcap stocks.

If you're interested in being part of my charting journey as I share how to create wealth from the profitable trade setups, join my telegram channel - Fast Profits Daily. You'll get access to the best trading ideas in the stock market.

Happy Investing!

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such.

Brijesh Bhatia

Brijesh Bhatia Research Analyst and expert chartist, is the editor of Alpha Wave Profits. Fully committed to his craft, Brijesh has mastered the art of making money by trading using technical analysis. Brijesh has an MBA from ICFAI and 16 years of experience in India's financial markets. He began his career on Dalal Street as commodities dealer and it wasn't long before he developed his own unique trading system. Brijesh worked on his trading system until it could be expected to deliver 5 units of return for every unit of risk.

Equitymaster requests your view! Post a comment on "Should You Buy Smallcap Stocks in a Bearish Market?". Click here!

  

More Views on News

5 Penny Stocks with Good Dividend Yields (Views On News)

Jun 25, 2022

These penny stocks are helping investors get stable returns in a volatile market.

Why Crude Oil Price is Falling (Views On News)

Jun 25, 2022

Global markets have become volatile, sending chills through the crude oil market.

Tata Group Stocks: Biggest Gainers and Losers so far in 2022 (Views On News)

Jun 22, 2022

Here's how Tata Group stocks have performed amid the volatility in the market.

To Move or Not to Move into Cash Right Now? podcast (Views On News)

Jun 25, 2022

Rahul Shah on whether one should move significantly into cash right now.

Will the Stock Market Recovery Continue? (Views On News)

Jun 25, 2022

The stock market has bounced back a little bit. Can it sustain the nascent momentum?

More Views on News

Most Popular

The Blueprint To Get Rich With Small-cap Stocks

All you need to know about successful investing in the smallcap space.

4 Sectors to Watch for Future Multibagger Stocks (Views On News)

Jun 17, 2022

With India's economic recovery accelerating, these sectors are likely to give multibagger returns in the future.

Why Tata Power Share Price is Falling (Views On News)

Jun 14, 2022

Here's why shares of Tata Power have fallen in recent days.

Is it Time to Start Buying Stocks Selectively? (Profit Hunter)

Jun 16, 2022

Some sectors have corrected by 50%. Do they merit a look?

Best Monopoly Stocks to Own in 2022 Views On News (Views On News)

Jun 18, 2022

Constant product innovation, latest technology, strong supply chain etc can all help companies enjoy monopoly like fortunes.

More

Become A Smarter Investor
In Just 5 Minutes

Multibagger Stock Guide 2022
Get our special report Multibagger Stocks Guide (2022 Edition) Now!
We will never sell or rent your email id.
Please read our Terms

S&P BSE SENSEX


Jun 24, 2022 (Close)

MARKET STATS