Smart Money Is Watching: Nifty May Be Entering A Low-Risk, High-Reward Zone, Says SEBI RA Saurab Jain

Nifty is trading close to critical levels following a sharp correction driven by geopolitical tensions, foreign institutional outflows, and global volatility.

SEBI-registered analyst Saurab Jain said Nifty may be entering a Margin of Safety zone, which is a level where the downside is limited and the risk-reward ratio turns favorable.

He described the Margin of Safety as a price area where risk is controlled, reward potential is significant, and probabilities tilt slightly in the trader's favor. 

Jain said this is not merely a technical or valuation zone but also a psychological comfort zone, where losses remain manageable if the market turns adverse. At the same time, a favorable move can lead to exponential gains.

According to him, Nifty has now approached trendline support, with the panic low of 24,473 serving as a key reference. He said the current zone is fragile but strategic. Historically, he noted, smart money does not panic when indices reach such danger points; it prepares instead.

Jain added that fear often peaks near market bottoms and that value typically emerges when broader sentiment is weakest.

He pointed out that when downside risk is limited, say 100–150 points, and upside potential extends 400–500 points or more, it creates an edge. 

The analyst said this doesn’t imply buying blindly, but rather entering with small, conviction-backed positions, using strict stop-losses and maintaining emotional clarity.

Jain said that success at such levels is more about mindset than strategy. Markets often induce fear-based exits and greed-driven entries, but Jain said seasoned traders treat fear as a signal, not a trigger.

He concluded that if Nifty holds the current zone, it could mark the beginning of a base for a sustained recovery. 

If the level breaks, the loss is small by design, but if the market bounces, the gain could be significant. He said smart wealth is built not by noise or news, but through structure, discipline, and understanding the power of the Margin of Safety.

On Stocktwits, retail sentiment for Nifty has moved from ‘bearish’ to ‘neutral’ amid ‘normal’ message volume.

Nifty has risen 4% so far in 2025.

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