I’ll answer how, when and why in this article.

India’s economic triumph is a remarkable tale of resilience and growth. Surging as the world’s fastest-growing major economy. If you share this belief, then this article is tailored for you, offering insights on how to capitalize on India’s growth story. Invest in India, Invest in the NIFTY 50.

First let me take you directly when to buy Nifty ETF. Let me take you to 2008- 2012 chart of Nifty.

We have plotted Anchored VWAP right from 2008 bottom. Anchored VWAP basically shows average price of participants from that point onward. You can clearly see, it bounced right from its support in 2012 and headed upward.

Once again, we plotted the Anchored VWAP line from the 2012 dip onward, and in 2016, Nifty found support at the AVWAP and started moving upward.

In 2020, there was an interesting development: the market decline broke through the 2016 dip AVWAP line, but the 2012 AVWAP line proved resilient enough to prevent further decline.

In summary, the AVWAP serves as a robust dynamic support for the market. Now you have an understanding of what to anticipate when the market experiences a decline and approaches this line.

However, the question remains: why should you consider buying a Nifty ETF at all?

• Nifty ETFs offer exposure to a diversified basket of stocks, reducing individual company risk.
• So it is less volatile than individual stocks.
• With typically lower expense ratios compared to actively managed funds, Nifty ETFs offer a cost-effective investment option.
• Actively managed by NSE. Best company remains and company not performing is left out. So you don’t have to do individual analysis of stocks.
• Most important Nifty has delivered around 12% CAGR since its inception in 1990. If you follow our way, and buy at dip your CAGR may increase by 1.5-2%. This double of what FD’s provides.
• You can pledge Nifty ETF and get additional leverage in F&O segment (Only if you have very good understanding of how derivatives works, otherwise it can wipe out your entire account).

Next time market falls, you know where to look.

Always prioritize risk management and proper position sizing to ensure you stay on track towards your goals. While analysis is valuable, it’s important to acknowledge that it may not always yield the expected results. Be prepared to adapt if things don’t go as planned, and maintain a resilient mindset throughout your journey.

Disclaimer: – I am not SEBI registered advisor. Please consult a professional advisor before taking any decision. This is not buy/sell recommendation.