Speaking on the sidelines of IOC 7.0 in Surat, Jani noted that new-age traders are increasingly focusing on derivatives, algorithmic strategies and data-driven execution platforms, while long-term investors continue to rely on profit growth and disciplined SIP flows.He also shares his views on Nifty’s technical setup, FII selling trends, sector rotation and where smart money is positioning itself amid ongoing volatility. Edited excerpts –
Q) Thank you for taking the time. The market has remained volatile and is more or less stuck within a certain range. The Nifty50 fell almost 1% in the week ended February 13. It has crossed the 50-DMA on the daily charts. Do you see more weakness?
Ans: Post-budget, positive sentiment driven by US rate developments pushed the Nifty higher. However, it failed to stay above the 26,000 mark and fell below the 25,800–25,700 zone. The index has now closed below the 50-DMA, indicating near-term weakness. Technically, Nifty is trading within a consolidation range of 24,800 to 26,100. Unless we see multiple strong closes below 24,800, a major downturn seems unlikely. For the time being, the market remains bound to a bandwidth, and a buy-on-dips strategy within this bandwidth is advisable.
Q) What keeps the markets on their toes? Data as of February 13 tells us that FIIs have net sold shares worth Rs 1,374 crores so far in February.
Ans: FIIs have largely remained net sellers of Indian equities over the past year. So far in February, they have sold shares worth Rs 1,374 crore. Historically, FII selling has tended to intensify when the INR weakens or when global bond yields rise. However, strong domestic institutional inflows (DIIs), especially through SIPs and mutual funds, continue to provide support and absorb selling pressure.Q) IT stocks were the worst hit last week. I’m sure you’re getting questions about what to do with IT stocks.
Ans: Yes, and this pressure is not new. Many major IT stocks have delivered flat or negative returns over the past two to three years. Concerns about US tariffs, a possible global slowdown and AI-induced disruption have affected sentiment. During the week ended February 13, the IT index fell 8.2%, lagging the broader market. The sector remains in a downward trend; however, the valuations have corrected meaningfully. Long-term investors may want to consider selective accumulation in high-quality IT names, especially if there is sector rotation.
Q) IOC 7.0 was a great success. Please take us through your new institutional mediation. How does that take shape?
Ans: For Jainam, IOC is not just an event but a platform that connects traders, investors, institutions and exchanges and helps build a strong financial ecosystem. Our institutional brokerage division, launched two years ago, is growing steadily. We are seeing higher participation from banks, AMCs and PMS houses. This growing commitment allows us to expand our research coverage and strengthen our institutional footprint.
Q) What are the other sectors that you think look overheated?
Ans: Sector rotation is clearly visible. Banks, NBFCs and auto stocks have outperformed the broader indices in the past few months. Relative strength indicators suggest that these sectors appear to be somewhat overheated in the short term and could see a consolidation or a price correction in terms of both time and price.
Q) Are there any sectors that have entered a buying trade after the recent correction?
Ans: After the recent correction, the pharmaceutical, IT and FMCG sectors are showing signs of stability. Their relative underperformance in recent months has improved the risk-reward ratio. These sectors may gradually pick up buying interest if the broader market remains stable.
Q) You are in touch with the community of traders. What is the major difference you have seen between the old and new era traders?
Ans: Traditional investors typically focus on fundamentals, earnings growth and long-term wealth creation. New-age traders, on the other hand, are more inclined to short-term momentum strategies, derivatives and technology-driven execution. Data analytics, algorithmic trading and faster execution platforms are being widely adopted by the newer generation.
Q) Where does smart money go? What does data tell you?
Ans: Data indicates consistent inflows into mutual funds and PMS advisory platforms. Monthly SIP contributions remain strong despite market volatility. This indicates that retail investors continue to believe in India’s long-term growth story and invest systematically rather than reacting to short-term market fluctuations.
(Disclaimer: Recommendations, suggestions, views and expert opinions are their own. These do not represent the views of the Economic Times)
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