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.