We look into instances of similar past market crashes to understand how markets behaved from thereon.
The last 20 times the Nifty fell more than 3 percent in a day, they rose 13 times over the next 10 days, and making up for the loss by clocking an average 3.95 percent gain.
What’s better: over the next 10 months, indexes headed higher 19 times out of 20 from the point of the market crash, with an average rise of 46 percent.
Here’s the table.
one more instance happened on 6th jan 2015, when nifty fell 3 % to close at 8127. after 10 working days Nifty i.e. on 20th jan 2015 Nifty closed at 8695.60. and two months after that on 04th march 2015 made a new all time high of 9119
so it is clearly evident that whenever nifty falls more than 3% in a single trading day, it's a good opportunity to buy.