Is It Time to Buy the Dip or Exit Before the Crash Deepens?
The Nifty has corrected by nearly 5% through the month of January 2026. The most important question on the minds of most retail investors at this stage is whether we are anywhere close to the end of this rather brutal correction. That is, of course, something I will examine over the course of this video.
However, alongside that, there is something far more important — and far more powerful — that I want to discuss. And that is a framework that can help you distinguish between two very distinct types of market drawdowns. The first is a buy-the-dip correction, during which investors should ideally look to accumulate quality stocks in order to benefit once a rebound rally eventually kicks in. The second is a drawdown that has the potential to evolve into a much larger market crash, during which investors should seriously consider reducing the equity exposure of their portfolios.
In this video, I lay out a framework that can help you clearly distinguish between these two kinds of drawdowns, and determine whether the correction we are witnessing right now is a buy-the-dip opportunity or one that carries the risk of turning into a much deeper market decline.
This distinction is absolutely critical, because the actions required from an investor are very different in each of these two scenarios. Hopefully, by the end of this video, you will not only be able to identify which of these two categories the ongoing correction belongs to, but also have a clear sense of what your course of action should be.
So Do watch the full video on ”Is It Time to Buy the Dip or Exit Before the Crash Deepens? | Indraanil Guha English"
