After a strong rally, what should investors do: Book profits or stay invested?

The stock market saw a strong surge, with the Nifty rising sharply and most sectors gaining significantly. It was a rare “all-green” session that lifted investor sentiment after weeks of mixed movement.

Market expert Shahina Mukadam describes it as a “wonderful day”, while advising investors to remain cautious. She says that although the rally was strong, it is unlikely to be a one-way move and could partly be driven by short covering.

She believes the positive mood may continue in the near term, but sharp ups and downs are likely. “I would not be surprised if we keep seeing 400–500 type moves over the next 15 days,” she says, while also pointing to the importance of tracking the outcome of the ongoing ceasefire situation.

Mukadam says that the current phase offers a good opportunity for investors to review their portfolios. She adds that this is the time to rebalance and prepare for the next two years, while recommending selective buying in sectors such as banking, metals and defence.

At the same time, she flagged global risks. “While the outlook is optimistic, there are risks like crude oil and US tariffs,” she adds.

For now, the rally looks encouraging—but careful stock selection remains key.

(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)