Nifty 50, Sensex at crucial support; Is it wise to follow buy-on-dips strategy in stock market? EXPLAINED

Stock market today: Benchmark indices Sensex and Nifty declined on March 28, weighed down by IT and auto stocks, as investor sentiment turned cautious ahead of the US reciprocal tariff announcement next week.

Sensex dropped over 550 points from its intraday high, while Nifty slipped below the 23,500 mark.

As of 13:16 IST, the Sensex was down 327.13 points (0.42%) at 77,279.30, while the Nifty fell 97.35 points (0.41%) to 23,494.60. Market breadth remained mixed, with 1,559 stocks advancing, 1,883 declining, and 108 remaining unchanged.

"The market’s resilience, despite Trump’s reciprocal tariff threats, comes from the renewed buying by FIIs and the confidence this has given to the bulls. The bears are currently on the back foot and this market construct may continue unless Trump announces something very nasty.

Apart from the tariffs the market will be looking forward to the April 9th monetary policy and after that the Q4 results. The US PCE inflation data expected today may give an indication of the inflation trend in the US. But more important than that would be the inflationary expectations from Trump tariffs.

In this time of heightened uncertainty investors should remain calm and wait for the dust to settle down. FII buying will keep fairly valued largecaps resilient," said VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited.

Should you follow ‘buy-on-dips' strategy amid volatility?

Stock market experts believe that "Buy on dips" is the best long term strategy in volatile or bear markets scenarios, which encourages long-term investors to accumulate quality stocks and capitalize on market dips to lower cost of buying.

“While sometimes it may be challenging with some inherent risks in the near to short term if time correction continues for long and investors may run out of cash before the actual market bottom. Hence investors should do some research before going blind on any strategy based on his/her financial goals,” said Prashanth Tapse, Sr VP research analyst at Mehta Equities Ltd.

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.