Stock Market: Bulls Gain with ‘Buy on Dips’ Strategy Amid IT Surge

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Stock Market: ‘Buy on Dips’ Strategy Reinforced as Bulls Dominate Seventh Straight Session

By S Jha

New Delhi, April 23, 2025: The Indian stock market extended its bullish streak for the seventh consecutive session, with the Nifty closing up 162 points (+0.67%) at a tad above the 24,300 mark. Today’s action, according to brokerage firm Angel Broking, further strengthens the case for a “buy on dips” strategy, as the index continues to form higher highs and higher lows.

“The immediate support lies around 24,150–24,100, while key support is placed in the 24,000–23,900 zone, aligning with the 200SMA and recent breakout levels,” the firm noted.

On the upside, resistance is expected near 24,550, coinciding with the 61.8% retracement of the decline from the all-time high.

Technical Overview: The Nifty traded firmly above its key moving averages, with the RSI at 67.70, indicating robust underlying momentum. Of the Nifty 50 constituents, 39 ended in the green. Broader market strength was evident with 305 advancers versus 193 decliners in the Nifty 500 universe.

Sector Watch: IT stocks led the rally, with the sectoral index surging nearly 4%, driven by renewed investor interest in beaten-down counters. Auto, Pharma, and Realty sectors also supported the upmove, while Financial Services and Banking saw profit-booking at higher levels.

Stock Highlights:

HCL Tech jumped 8% after reporting an 8% YoY rise in Q4FY25 net profit to ₹4,307 crore, meeting market expectations.
Eicher Motors slipped up to 3% amid concerns of intensified competition following speculation of zero tariffs on bikes above 705cc.
Gensol Engineering extended losses, falling 5% intraday after SEBI’s interim order on alleged fund diversion by the company and its promoters.

Market Breadth & Sentiment: A total of 221 stocks in the Nifty 500 and 29 in the Nifty index are currently trading well above key short- and long-term moving averages, underlining the market’s broad-based strength.

Global Cues: A strong overnight close on Wall Street set a positive tone globally. Asian markets mirrored the sentiment, closing higher, and European indices also traded in the green, reflecting widespread optimism in global equities.

FII Flows: After months of net selling, Foreign Institutional Investors (FIIs) have returned with force, pumping over $2 billion into Indian equities in just the last five days — signaling a renewed wave of global investor confidence.

Corporate News:

The Wadhwa Group is planning to raise ₹2,000–2,500 crore via an IPO at a ₹9,000 crore valuation. The proceeds will be used to retire debt and fund new projects, with DRHP filing expected soon.
In global tech, the EU has fined Apple €500M and Meta €200M under the Digital Markets Act for anti-competitive practices. Both tech giants are now required to alter their App Store and ad platforms significantly.

Outlook: With momentum and breadth favoring the bulls, and key supports holding firm, the market remains in a strong technical position. However, resistance around 24,550 could be a near-term hurdle. Investors are advised to remain cautious and use dips as buying opportunities in quality names.

Disclaimer: This article is only for informational purposes, and in no way recommends buy or sell of shares in the stock market)

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