Trump's tariffs: What market trading strategy should investors adopt amid uncertainty?
As of 9:19 am, the BSE Sensex had gained 33 points, or 0.04%, reaching 82,668, while the Nifty50 inched up by 8 points, or 0.03%, to 25,230.
Markets continue to remain in a cautious trading zone, awaiting concrete Q1 earnings data to gauge real economic momentum, while uncertainty around Trump's tariff-related statements continues to fuel volatility.
' Any earnings disappointment could increase downside pressure. In such an environment, traders should prioritize disciplined execution, employ strict stop-losses to avoid large drawdowns, and diversify positions across sectors or asset classes to reduce specific risks,' said Prashanth Tapse, Sr VP Research Analyst at Mehta Equities Ltd.
According to Tapse, the undertone in Nifty remains strong, with every dip being bought into.
' A decisive close above 25,350 will likely confirm continued strength and open the path for further upside. However, if Nifty closes below 25,080, there is a risk of testing the 50-day DMA near 24,950. A sustained trade below this level could lead to deeper corrections,' Tapse said.
Meanwhile, Shrikant Chouhan, Head of Research - Equity, Kotak Securities, believes that market's volatility within a narrow range is a healthy sign, hinting at a corrective phase of the recent uptrend from 24,500 to 25,650.
' With value buying emerging, the focus should remain on quality stock selection while maintaining active participation at every level. Technically, a close above 25,500 may open the gates to 26,000, while a break below 25,000 could dampen near-term sentiment,' Chouhan said.
Prashanth Tapse of Mehta Equities recommend short-term traders to find opportunities in volatility by capitalizing on small price moves and booking profits or losses swiftly. Meanwhile, long-term investors should view market dips as opportunities to accumulate high-quality companies with strong balance sheets and consistent earnings visibility.
On the other hand, Anuj Gupta, Director, Ya Wealth Research & Advisory, advises investors should trade with strick stoploss levels in the volatile market.
' Generally in the volatile market, prices goes elsewhere, trend not clear. So generally in that case the chances of stoploss triggered very high.Traders can go with less quantity positions. Firstly they should calculate important key levels to enter and exit. Timing of the market is always very important. One should keep eyes on sectoral or individual stock to trade based on its fundamental values. They can also us hedging strategy by using option trading to protect the position and limit the losses,' Gupta said.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
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