Buy the dip or wait it out: What should investors do if the Indian stock market breathes? | Einsmark news
After a strong two -day rally, Indian benchmark indices held breath on April 16, with the Sensex and Nifty Trading Flat during the afternoon session. Global clues weighed on investor sentiment, even though broader markets showed resilience. Midcap and smallcap stocks fared better than nearly 1 percent, while the India VIX – a barometer of market volatility – is another 3 percent, and indicates cool nerves in Dalal Street. While domestic indices have succeeded in recovering losses from April 2, after SU’s 26 percent reciprocal tariff announcement, the underlying tone remains careful. Markets received a lifting after the US administration announced a 90 -day break with the implementation of the rates, providing some breathing room for investors. However, as the tensions in global trade dynamics remain unresolved, especially between the US and China, market viewers remain on the point. UK Vijayakumar, head investment strategist at Geojit Financial Services, noted that although the Nifty has recovered from its earlier losses, investors from here must again accept that they should accept a smooth upward trajectory. He warned: ‘The market indicates calm after the storm, but it can be temporary. With China canceling the export of rare earth and canceling Boeing orders, fresh volatility can result from retaliation in the ongoing trade war. ‘ The resilience of consumer -oriented shares provides clues to one of the most important observations from the recent rally was the strong performance of domestic consumer supplies. According to Vijayakumar, companies such as Bajaj Finance, Bharti Airtel, Indigo Airlines and Eicher Motors have touched their highlight of 52 weeks, which underlines the preference of investors for domestic shocks isolated. Meanwhile, it has left shares, reflecting their dependence on global revenue streams. He added that the strength seen in heavyweights such as HDFC Bank, ICICI Bank and Kotak Mahindra Bank further strengthened the matter to remain anchored to the domestic claim-led sectors. Focus carefully on the fundamentals Vikas Gupta, CEO and Investment Strategist at Omniscience Capital, reflects a similar prudence tone. He advised investors to stem the volatility from unpredictable global announcements, especially from the US. “Markets adapt to the new reality of Daily Trump stores and turns,” Gupta said. He emphasized that he holds fundamentally strong businesses – both domestic and global – and accumulates it during market dips on the basis of conservative valuations. Gupta also warned investors to keep poor businesses in their portfolios, whether domestic or internationally. “Start leaving such shares when a fair price is available,” he added. Technical levels to see how Shikant Chrikant, head of stock research at Kotak Securities, offered a short-term technical perspective. He believes the market is currently in a bullish phase, but has warned against profit discussion at higher levels due to temporary circumstances. Chouhan identified important resistance zones at 23,400 and 23,600 on the Nifty, and 76.900 and 77,600 on the Sensex. The disadvantage is expected to support about 23,100-23.200 for the Nifty and 76,100-76.400 for the Sensex. “If the market retreats to these levels, it would be the ideal opportunity to build stocks with a medium-term view,” he advised. For Nifty, he recommended that he buy between 23,100-23.200 with a stop loss below 23,000 on a closing base. Disclaimer: The views and recommendations above are those of individual analysts or brokerage companies, and not of currency. We advise investors to check with certified experts before making investment decisions. First published: 16 Apr 2025, 01:13 pm Ist