Buy On Dips Or Stay On Sideline? What Ajay Bagga Sees For Markets Next Few Months

The Nifty 50 opened below the 22,000 mark on Tuesday, continuing to face selling pressure. And, there is more pain ahead, according to market veteran Ajay Bagga. The market will bottom out in the next two-three months, followed by a recovery over the subsequent three months, he predicts.

The NSE Nifty 50 and BSE Sensex opened lower taking cues from the global markets. The Nifty 50 opened 0.67% down at 21,974.45 and the Sensex was 0.37% lower at 72,817.34.

Bagga advised retail investors to continue investing regularly over the next six months. “Regular money, over the next six months, keep investing because first the bottom will form, recovery will take time again, it will follow corporate earnings…next nine months from April to December will give a good base effect…bottoming two-three months from now and then recovery takes another three months and by year-end we will reach back to where we were in September 2024," he said in conversation with NDTV Profit.

When asked whether this is the right time to buy on dip or stay on the sidelines, Bagga emphasised the importance of consistent investment. “For retail audience I would say every time is buying time, you should regularly keep buying," he said.

"We are probably about a couple of months into the bottoming process. It will take time; it won’t happen very rationally, very scientifically that the market participants will realise. Say, the Nifty is below its 10-year average trailing P/E and now let’s start buying. That won’t happen. Most of the momentum on both sides takes the market up and down, so there is an overshooting that happens. Right now, we might be in the overshooting.”

Bagga also addressed concerns about further market declines. “I do not think it is going down 10% more, unless there is some shooting war or some geopolitical big events come in.”