Last Night, I came with the idea of comparing Nifty 50 movement after 2008 crisis with the present scenario. I took a slice of Nifty 50 from 9-March-2009 and put that slice corresponding to the date 18-May-2020 i.e. the date when Nifty started recovering for both the dates.
I was amazed to see that the two patterns are almost similar. I took the weekly historical data and found out the correlation between the 2 sets. The correlation is as high as 87.5%.
The next step was to run a regression to predict the Nifty values using the old data. Again I found out that 76% of the current Nifty data was easily explained by the old Nifty 50 data.
So, Is Nifty 50 repeating history? .
One can only find this by going into the future. Let's wait and see how the pattern evolves in the coming days.
Note: The above are explicitly mine and not at all suggest any forecast of the future.
I was amazed to see that the two patterns are almost similar. I took the weekly historical data and found out the correlation between the 2 sets. The correlation is as high as 87.5%.
The next step was to run a regression to predict the Nifty values using the old data. Again I found out that 76% of the current Nifty data was easily explained by the old Nifty 50 data.
So, Is Nifty 50 repeating history? .
One can only find this by going into the future. Let's wait and see how the pattern evolves in the coming days.
Note: The above are explicitly mine and not at all suggest any forecast of the future.