Indian equities may be under pressure from global cues, but market expert Rudramurthy B.V. believes the underlying resilience in benchmarks is being underestimated. Even as weak global markets, geopolitical tensions in West Asia, and continued foreign institutional investor selling weigh on sentiment, Murthy says that present market conditions do not favour aggressive bearish bets.
“Closer to these support zones of 23,000–22,800… the risk-reward definitely does not favor a short trade,” Murthy said, cautioning traders against chasing downside after sharp declines. The Nifty has seen bouts of selling, including a near 200-point fall, but he pointed out that such moves have largely been driven by “profit booking or some amount of shorting in specific sectors,” rather than a structural breakdown.
His view stands in contrast to the cautious tone in global markets. U.S. indices have seen sharp cuts, Asian peers are under pressure, and yet India has managed to hold ground better. “We are not down 1.5–2 per cent like other Asian markets… there is resilience in our market,” he noted, adding that domestic investors should pay attention to relative strength rather than just headline weakness.
Murthy placed strong emphasis on key technical levels, suggesting that markets still have a cushion. “Let the support break around 22,800 to 23,000 break. Then one can think of shorting… I am not in that camp to short after a gap-down open,” he said. For the Bank Nifty, he flagged the 53,800–54,000 zone as a crucial support band.
Instead of shorting, Murthy advocated a “buy-on-dips” approach. “Wherever you saw relative strength, those are the areas where I will look at buying… in today’s gap-down open,” he said, making it clear that selective positioning is key in the current market. Among sectors, private banks stood out as clear outperformers in an otherwise uncertain market. “Private banks were relatively very, very strong… Axis Bank, ICICI Bank and even Kotak Bank,” he said, pointing to consistent strength in their charts.
Murthy remains constructive both from a short-term trading and medium-term investment perspective. “Even valuation-wise, a lot of comfort is there in these banks now,” he said, adding that such stocks can be accumulated for “a one- to two-year kind of investor.”
In terms of specific ideas, he suggested a bullish stance on Axis Bank and ICICI Bank. “Axis Bank looks very strong… target of Rs 1,345,” he said, while recommending ICICI Bank with a potential target of Rs 1,350. “In today’s gap-down… it will be a great entry with a good risk-reward trade,” he added.
The broader concern in markets remains persistent FII selling and slowing flows into equities. Market participants noted that while SIP inflows remain steady, overall equity inflows have softened, reflecting cautious retail participation.
However, Murthy believes key macro indicators are signalling stability rather than stress. “Look at crude oil… Brent is between USD 90 to USD 102 despite all escalation,” he said. Similarly, currency stability is also offering comfort. “USD/INR is in that 94–96 range… it has not gone beyond 96 despite all the negative news.” For him, these two variables are critical indicators that the worst may already be priced in. “Brent is in check… USD/INR is in check… there is resilience,” he reiterated.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)
