India’s equity markets may appear directionless on the surface, but beneath the volatility, a structural shift is quietly taking shape, according to Atul Suri of Marathon Trends. Suri noted that the market is currently in a consolidation phase, with signs of a bottoming-out process already visible.
“It’s been almost one and a half, two years… but one thing that I’m noticing is that the market is not making new lows,” Suri said, pointing to the resilience in benchmark indices despite persistent negative sentiment and global headwinds. He added, “What I feel is that the market’s trying to make a base,” suggesting that the groundwork for the next upward move may already be in place.
Suri identified 24,500 on the Nifty as a critical level to watch. “A breakout would actually tell me that we could make a move towards new lifetime highs,” he noted, adding that such a move could come quickly given the right triggers. Among those triggers, easing crude prices stand out. “My sense is that we would see crude around USD 65 to USD 70… when crude was at those levels, we had almost nudged new lifetime highs,” he explained.
Despite the absence of a strong bullish narrative, Suri believes the current phase is more of a “time-wise correction” rather than a structural downturn. “There is no narrative, there is no storytelling, there is no optimism out there… but in this way, I think very subtly bases get made.”
Banks Emerging as Market Leaders
In terms of sectoral leadership, Suri is clear, banking stocks are likely to lead the next rally. “The sector that I would look at is the most important sector, that is banks,” he said, highlighting their heavy weightage in benchmark indices. “You can clearly see leadership in banks… it really pulls the biggest punch.”
He also pointed out that while large sectors like IT have weakened, they are no longer falling sharply. “They are forming a base… incremental fall is not there,” he said, suggesting broader stabilization across sectors.
Midcaps, Data-Centre Theme Gaining Traction
Beyond large caps, Suri sees strong trends emerging in midcap stocks and niche themes linked to the global AI and data center boom. “If you look at stocks making new highs… there is a certain thematic play,” he observed.
He described a broader opportunity ecosystem around infrastructure supporting data centers. “Companies that are suppliers to data centers… you’ll notice that a lot of those stocks are moving higher,” he said. These include segments like wires and cables, electronics manufacturing, and cooling systems, which are benefiting indirectly from rising investments in digital infrastructure.
“This is something that I’ve created… there’s no such thing as data center suppliers, but you will find that wires and cables… electronic manufacturers… these are themes,” he said, underlining the importance of spotting emerging horizontal trends rather than relying solely on traditional sector classifications.
Industrial Metals a High-Conviction Bet
On commodities, Suri struck a cautious note on precious metals but turned distinctly bullish on industrial metals. “I personally don’t think that silver and gold can make massive up moves… they will be selling at higher levels,” he said.
Instead, he identified copper, zinc, and aluminium as key opportunities. “Where I feel bullish… is the industrial metals. I feel very bullish on these metals,” he said, linking their prospects to global electrification and energy transition trends. “There is a very big shift happening in the whole power energy space,” he added, noting that demand from infrastructure and renewable investments could drive sustained upside.
(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.)
