New Delhi, April 12 -- The Indian equity market has been through a rollercoaster during the past few weeks, facing structural shocks from the trade disruptions due to the conflict in West Asia, with many stocks falling sharply. A report by Vallum Capital suggests that the recent nosedive is a sign of speedy recovery in the market.

According to the report, the market has reached a point of "capitulation", where fear is overriding fundamentals, and this is often a precursor to a strong recovery.

"When more than 70% of stocks fall below their 200-day moving average, it's a sign of extreme stress," said Vallum Capital. On April 8, this reading hit 71.3%, indicating that the market is in a "Capitulation Zone". Historically, this has been a r...