Nifty 50 logs best jump in 15 months after historic five-month losing streak: What should be your trading strategy now? | Stock Market News

A rally in India’s Nifty 50 stock index in March, its best jump in 15 months, helped the benchmark pull back from losses after a historic five-month losing streak and finish this financial year with gains.

The index of 50 bluechip stocks rose 6.3% in March, contributing to 5.34% gains for the fiscal year that runs from April to March, while the BSE Sensex advanced 5.1%. The benchmarks were in the red as recently as March 4.

Key positives include upcoming monetary easing, fiscal deficit reduction to 4.4% by FY26, tax relief boosting consumption, and healthier banking sector balance sheets. So instead of panicking and taking action on portfolios, investors should focus on fundamentals and review all your external assets and assess your asset allocation.

According to Vaibhav Porwal, Co-Founder, Dezerv, “Despite the correction we are witnessing, India’s long term growth story looks promising. Key positives include upcoming monetary easing, fiscal deficit reduction to 4.4% by FY26, tax relief boosting consumption, and healthier banking sector balance sheets. So instead of panicking and taking action on portfolios, investors should focus on fundamentals and review all your external assets and assess your asset allocation.”

FY26 will be a year of asset allocation where instead of a broad market rally, there will be pockets of opportunities for wealth creation. Investors should focus on picking assets that reflect their risk appetites.

While the returns from the equity markets have been between 20-25% in the past year across certain categories, investors are advised to rationalise expectations from the equity markets to about 13-15%. Amidst market volatility, investors should stay disciplined and continue with their SIPs. Market corrections let you enter at a lower cost and thus reduce your average cost of investing.

If we look at historical market corrections of ~15-20%, the markets have delivered a median return of ~ 15% over the next 3 years. This presents a good opportunity for investors to generate returns in actively managed portfolios.”FY26 will be a year of asset allocation where instead of a broad market rally, there will be pockets of opportunities for wealth creation. Investors should focus on picking assets that reflect their risk appetites. While the returns from the equity markets have been between 20-25% in the past year across certain categories, investors are advised to rationalise expectations from the equity markets to about 13-15%. Amidst market volatility, investors should stay disciplined and continue with their SIPs. Market corrections let you enter at a lower cost and thus reduce your average cost of investing.

If we look at historical market corrections of ~15-20%, the markets have delivered a median return of ~ 15% over the next 3 years. This presents a good opportunity for investors to generate returns in actively managed portfolios.”

According to Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, “After showing a decent upside recovery from the lows on Thursday, Nifty slipped into weakness amidst range movement on Friday and closed the day lower by 72 points. Nifty opened on a positive note, was not able to sustain the highs in the early part of the session. An attempt to stage upside recovery met with selling pressure and Nifty finally closed near the lows.”

A reasonable negative candle was formed on the daily chart, which indicates an inability of bulls to continue with follow through upmove. The present chart pattern signal chances of range bound action developing within a high low of around 23650-23400 levels.

Nifty on the weekly chart formed a small candle with long upper shadow. Technically, this market actions indicates a formation of doji type candle pattern (type of gravestone doji -not a classical one). This market action suggests more consolidation for the short term.

The near-term uptrend of Nifty remains intact and the downward correction from the highs has not damaged the underlying uptrend so far. Immediate support is placed at 23400 (200day EMA) and the overhead resistance to be watched around 23650 levels and next 23850 for coming week.