The average one-month forward returns post such a losing streak has been 2.68%, according to the SAMCO data.
Back in August 2002, the Nifty had declined for 8 days in a row. The index gained 6% in the one month post the end of that losing streak.
The index again fell eight sessions in October 2002 and the conclusion of that streak resulted in returns of 12% over the next one month.It took nine years for the Nifty to see another eight-day losing streak, which happened in May 2011. The returns in the one month post that were positive, but not significant, at 0.4%.
Back in February 2019, the Nifty had declined eight days in a row and then returned as much as 9% over the next one month. It repeated a similar streak in May 2019 and gained 5.25% in the next month after that.
The instances during which the Nifty has delivered negative returns after an eight-day losing streak, were in November 2011 (-3.5%), August 2013 (-2.24%), March 2015 (-0.7%) and February 2023 (-2%).
| Date | Losing Streak | One-Month Returns (%) |
| August 2002 | Eight Days | 5.85 |
| October 2002 | Eight Days | 12.3 |
| May 2011 | Eight Days | 0.42 |
| November 2011 | Eight Days | -3.46 |
| August 2013 | Eight Days | -2.24 |
| March 2015 | Eight Days | -0.67 |
| February 2019 | Eight Days | 8.75 |
| May 2019 | Eight Days | 5.25 |
| February 2023 | Eight Days | -2.04 |
Apurva Sheth of SAMCO Securities said that 87% of the stocks listed on the NSE are trading below their 40-Week Exponential Moving Average (WEMA). This is even lower than the June 2022 market bottom, where 82% of the stocks were below that level. “Such low readings usually signal that majority of the selling pressure is behind us. With stocks deeply corrected, even a small change in sentiment could trigger a short-to-medium-term bounce, particularly in stocks that have declined the most,” he said.
