In this edition of ETMarkets Smart Talk, Kiran Jani, Head of Technical Research at Jainam Broking Limited, highlights a clear shift in market behaviour — from traditional, fundamentals-driven investing to fast-paced, technology-led trading.
Speaking on the sidelines of IOC 7.0 in Surat, Jani notes that new-age traders are increasingly gravitating toward derivatives, algorithmic strategies, and data-driven execution platforms, while long-term investors continue to rely on earnings 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) Thanks for taking the time out. The market has remained volatile and is more or less stuck in a range. The Nifty50 fell nearly 1% for the week ended 13 Feb. It has breached the 50-DMA on daily charts. Do you see more weakness?
Ans: Post the Budget, positive sentiment driven by US tariff-related developments pushed the Nifty higher. However, it failed to sustain above the 26,000 mark and slipped below the 25,800–25,700 zone. The index has now closed below its 50-DMA, indicating short-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 breakdown appears unlikely. For now, the market remains range-bound, and a buy-on-dips strategy within this band is advisable.
Q) What is keeping markets on the edge? Data as on 13th February tells us that FIIs have net sold equity worth Rs 1,374 crores so far in February.
Ans: FIIs have largely remained net sellers in Indian equities over the past year. So far in February, they have sold equities worth Rs 1,374 crore. Historically, FII selling tends to intensify when the INR weakens or when global bond yields rise. However, strong domestic institutional inflows (DIIs), particularly through SIPs and mutual funds, continue to provide support and absorb the selling pressure.Q) IT stocks witnessed most of the brunt in the week gone by. I am sure you must be getting queries as to what one must do with IT stocks.
Ans: Yes, and this pressure is not new. Many large-cap IT stocks have delivered flat or negative returns over the past 2–3 years. Concerns around US tariffs, a potential global slowdown, and AI-led disruption have impacted sentiment. During the week ended 13 February, the IT index declined 8.2%, underperforming the broader market. The sector remains in a downtrend; however, valuations have corrected meaningfully. Long-term investors may consider selective accumulation in quality IT names, especially if sectoral rotation plays out.
Q) IOC 7.0 was a huge success. Please take us through your new institutional broking. How is that taking shape?
Ans: For Jainam, IOC is not just an event but a platform that connects traders, investors, institutions, and exchanges, helping build a strong financial ecosystem. Our institutional broking division, launched two years ago, is scaling up steadily. We are witnessing higher participation from banks, AMCs, and PMS houses. This growing engagement is enabling us to expand our research coverage and strengthen our institutional footprint.
Q) What are the other sectors which are looking overheated according to you?
Ans: Sector rotation is clearly visible. Banks, NBFCs, and auto stocks have outperformed the broader indices in recent months. Relative strength indicators suggest these sectors appear slightly overheated in the short term and could witness either time-wise consolidation or a price-wise correction.
Q) Any sectors that have come into a buy trade following the recent correction?
Ans: After the recent correction, pharma, IT, and FMCG sectors are showing signs of stability. Their relative underperformance over the past few months has improved the risk-reward equation. These sectors may gradually attract buying interest if the broader market remains stable.
Q) You are in touch with the traders’ community – what is the big difference you have seen between the old and the new age traders?
Ans: Traditional investors typically focus on fundamentals, earnings growth, and long-term wealth creation. In contrast, new-age traders are more inclined towards short-term momentum strategies, derivatives, and technology-driven execution. Data analytics, algorithmic trading, and faster execution platforms are widely adopted by the newer generation.
Q) Where is smart money moving? 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 suggests that retail investors continue to believe in India’s long-term growth story and are investing systematically rather than reacting to short-term market fluctuations.
(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)