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Today once again a smile has returned on the faces of investors in the Indian stock market. Due to positive signals from the global market and strong buying by domestic institutional investors, the market closed in the green in today’s trading session. Bombay Stock Exchange’s main index Sensex was seen trading with a strength of about 400 points, while National Stock Exchange’s Nifty also crossed the important psychological level and crossed 23,350. After this sharp rise, it is natural that the question arises in the minds of investors whether this rise will continue further or there may be ups and downs in the market again. Let us understand from the opinion of market experts and leading experts what strategy investors should adopt in the coming days.
There was a bullish atmosphere on Dalal Street since the beginning of today’s spectacular trading session. Heavy buying was seen in shares of banking, auto, IT and metal sectors, due to which the benchmark index achieved impressive gains. The market has got a big boost due to strong global signals from the US markets and increased re-investment in Indian markets by Foreign Portfolio Investors (FPIs). Experts believe that investors are keeping a close eye on the quarterly results of companies and the upcoming economic data, which will play an important role in deciding the direction of the market in the coming weeks.
Market regained momentum due to global cues and strong domestic support
The main reason for the current rise in the stock market is the combination of strong infrastructure of the domestic economy and positive global trends. Investors are keeping a special eye on the statements made by major central banks around the world regarding interest rates and inflation data. Apart from this, market morale remains high as GST collection and retail inflation data in India remained as per estimates. Experts say that as long as there is no major negative news in the global market, this positive trend and stability can continue in the domestic market.
How important is Nifty crossing 23,350 for investors?
Technically speaking, Nifty crossing 23,350 has proved to be a big milestone for the market. Technical analysts believe that if Nifty manages to strongly maintain this level as its support zone, then the index may move towards new record highs in the coming days. However, market experts also suggest that profit booking may be seen at upper levels, hence investors should be selective and bet on stocks with strong fundamentals instead of being too aggressive.
Huge support received from huge buying in banking and IT shares
In today’s trading, the market got the most strength from shares of banking and financial services as well as IT sector. Buying momentum was seen in the shares of major private and public sector banks, due to which Bank Nifty also recorded a spectacular rise. Apart from this, investors also showed keen interest in domestic IT stocks in anticipation of better performance of global technology companies. Experts believe that sectors which have strong balance sheets and low debt levels will continue to perform better in the times to come.
Experts’ advice: What should be the strategy of investors in the coming times?
Leading market experts say that in the current bullish environment, investors should avoid investing money in any stock without thinking. At this time, investing from a long-term perspective can prove to be most beneficial. If you are doing short-term trading, strictly follow the stop loss as the market can suddenly fluctuate at higher levels. Shares of automobile, pharma and select consumer goods companies can give good profits in the coming days, provided the financial results of the company are properly studied before investing.
Investors’ interest in midcap and smallcap shares is also increasing
Along with largecap stocks, midcap and smallcap stocks also witnessed a lot of activity in today’s session. The craze of retail investors towards these shares continues. However, experts also say that after the huge boom in smallcap and midcap segments, valuations have reached very high levels, hence there is a need to be extremely careful while investing in them. Choose shares of only those companies which have a strong business model and less debt burden.
What will investors keep an eye on in the coming weeks?
The movement of the Indian stock market in the coming times will mainly depend on some selected triggers. The most important thing in this is the stance of the Central Bank on interest rates in the upcoming monetary policy review, the progress of monsoon and the quarterly results of the corporate world. Apart from this, data on buying and selling by foreign institutional investors (FIIs) will also play an important role in deciding the direction of the market. If global commodity prices remain stable and domestic demand remains strong, the times ahead could prove to be very exciting and profitable for stock market investors.