Rohit Srivastava, the Founder of Strike Money Analytics & Indiacharts, discusses notable market segments, namely commodities, public sector undertakings (PSUs), and financials. He also mentions oil and gas as a distinct narrative due to ongoing developments in the oil sector.
The markets have recently exhibited some movements, with notable weakening seen across both the Nifty and Nifty Bank indices. After a six-day streak of gains for Nifty and approximately five days for Bank Nifty, there has been a pullback. According to Srivastava, this pullback should be viewed as a minor period of consolidation within an existing upward trend. Nifty’s immediate support level is pegged at approximately 23,500, while for Bank Nifty, it is around 51,150. He suggests that at these levels, a resumption of the upward trend is likely, projecting Nifty to reach around 24,630 in the coming month. For Bank Nifty, after surpassing 52,150, a target of 53,000 is anticipated.
With regard to sectors, Srivastava notes the importance of sector rotation and identifies areas poised for maximum gains over a medium to long-term period. Recently, the market has favored non-banking financial companies (NBFCs) within the financial sector, which has outperformed alongside PSUs and metal stocks. These sectors stand out, continuing to attract investment due to their lower valuations compared to other areas. He identifies four leading sectors—commodities, PSUs, financials, and oil and gas—as showing promise for sustained performance.
In addition, Srivastava observes a rotation pattern, highlighting the IT sector. Although it had been underperforming, with the US markets bottoming out and a new earnings season approaching, the IT sector appears ready for improvements. Investors should consider potential near-term gains in this sector.