Rohit Srivastava, Founder of Strike Money Analytics and Indiacharts, advises navigating through short-term market fluctuations by waiting for potential dips, as they provide opportunities for investment. He emphasizes that markets are unlikely to move in a single direction continuously, suggesting that investors should view any downturns as chances to capitalize.
In recent trading sessions, the Nifty index has faced resistance around its 100-day moving average. Rohit Srivastava points out the importance of observing consolidation before expecting a significant breakout, particularly as the market has exhibited large gaps recently. He highlights that such movements do not usually lead to sustained advancements. The current resistance for Nifty is at approximately 23,400, with potential levels to watch including 23,600 on the upside and 22,800 as a point of support.
Turning to the Bank Nifty, there are two critical levels to monitor: 52,750 and above that, 53,174. These levels will help determine whether the current performance is sustainable or if near-term volatility remains for financial stocks. The banking sector has shown resilience, not dipping below the lows observed in March, in contrast to the broader Nifty index. Should Bank Nifty move beyond 53,174, it could indicate a more sustainable upward trend.
Regarding life insurance companies and the broader insurance sector, Rohit Srivastava suggests there is potential for adding new long positions, especially considering the strength shown by companies like ICICI Pru, HDFC Life, and SBI. He notes the importance of identifying opportunities during market dips, emphasizing that the financial sector, including insurance companies, is currently outperforming. Srivastava expresses a particular interest in non-banking financial companies (NBFCs) and suggests using market fluctuations as opportunities for investment.