There is always the risk of going wrong when declaring the market has bottomed out. The reality is, you tend to figure out that the bottom was formed much after it was actually formed. But, while it may be too early to call an end to the correction, there are signs that this phase is winding down. Just look at the reaction on the street to bad news or negative developments. While it reacts in the short term, the recovery is always swift. This is a clear sign that either the bottom has been formed, or we are not far from it. Also remember: What we are witnessing now could be the impact of the expiry of the derivative contract for November. So, leave aside what is happening to the market today – think ahead.
