Tech Analyst Ajit Mishra Discusses Market Strategies for 2026 Amid Uncertainties
'Sell in May' not a good approach in 2026, says tech analyst Ajit Mishra
Business Standard
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Ajit Mishra, Senior Vice President of Research at Religare Broking, suggests a cautious trading approach in light of the Nifty's year-to-date decline of over 8%. He emphasizes selective investment in key sectors like IT, banking, and energy, while advising against a blanket 'sell in May' strategy.
- 01Nifty is down over 8% year-to-date despite a 7.5% rebound in April.
- 02Mishra advocates for a selective investment strategy rather than a blanket 'sell in May' approach.
- 03The IT sector remains uncertain due to AI-led disruptions impacting traditional revenues.
- 04Energy security is gaining importance, with Power Finance Corporation and Inox Wind as potential investment opportunities.
- 05Commodity cycle remains uncertain, with promising prospects for metal stocks like Hindalco and JSW Steel.
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Ajit Mishra, Senior Vice President of Research at Religare Broking, believes that the recent pullback in the Nifty index reflects improving market sentiment, yet with a year-to-date decline of over 8%, uncertainties remain. He recommends a calibrated trading approach, advising investors to stay invested while selectively booking profits in overheated sectors. The Nifty saw a 7.5% rebound in April, but Mishra cautions that the market outlook remains range-bound due to various factors, including global interest rates and geopolitical tensions.
In the IT sector, Mishra maintains a neutral stance, noting that while valuations have corrected, the growth outlook is clouded by AI-driven disruptions. He suggests that investors should wait for clearer demand recovery before engaging further. In contrast, he highlights energy security as a critical theme, recommending stocks like Power Finance Corporation, which may offer a 12-15% upside, and Inox Wind, with a potential 20-30% upside despite higher volatility.
For commodity investments, Mishra sees ongoing demand for metals driven by de-globalization and geopolitical uncertainties, pointing to companies like Hindalco and JSW Steel, which could gain 8-15% in the near term. For novice investors, he advises focusing on price, volume, and exponential moving averages to gauge market trends effectively.
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Investors may need to adjust their strategies based on market volatility and sector performance, particularly in IT and energy, which could influence their investment returns.
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