Indian equity markets are approaching a crucial technical milestone, with the Nifty hovering near the 24,000 mark amid improving global sentiment and easing geopolitical concerns. According to market expert Gautam Shah, Founder of Goldilocks Premium Research, the recent rebound in equities is supported not only by positive news flow but also by strengthening chart patterns.
In an exclusive interview, Shah said that while a breakout above 24,000 could pave the way for higher levels in the coming months, investors may find greater opportunities in small-cap and micro-cap stocks rather than in large-cap benchmark indices.
Nifty’s next big test – 24,000
Shah has said that Indian markets demonstrated resilience during recent geopolitical tensions, particularly when global equities witnessed volatility.
“We were watching the 23,100 level very closely because it was the lower end of the range. In just three days, we are now at the doors of 24,000,” Shah said.
According to him, a decisive move above 24,000 could open the possibility of the Nifty heading towards 25,500 over the next few months. However, he said that investors should not expect an uninterrupted rally due to challenges such as high valuations and concerns surrounding artificial intelligence-led disruptions.
“The final hurdle that the index needs to clear is 24,000. If this level gets cleared, the Nifty could attempt to move towards 25,500,” he added.
Small caps and micro caps continue to outperform
While the benchmark index remains range-bound, Shah believes a parallel bull market is already underway in the broader market.
He has highlighted that several small-cap stocks have delivered gains of 50 per cent or more over the last three months, reflecting strong investor interest outside the large-cap universe.
“The biggest opportunity is in the broader markets. Micro caps and small caps are probably two indices that will go on to hit lifetime highs very soon,” Shah said.
Banks have supported the market, But leadership may shift
“Had it not been for the banks in the last two weeks, we would have been in very difficult shape,” Shah said.
Renewable energy theme remains a structural story
Among sectors, Shah expressed confidence in the power, energy and renewable energy space, describing it as a long-term structural opportunity.
Drawing parallels with the chemicals rally seen during 2020-21, he said the renewable energy ecosystem is witnessing a similar transformation driven by government policy support and strong industry fundamentals.
“Power, energy and the renewable space represent a structural change. The government understands it, the market understands it, and there is still significant headroom for growth,” he said.
Positive on Adani group stocks
Shah also remained constructive on stocks within the Adani Group, citing strong relative strength on technical charts and improving market perception.
“When I compare the Adani Group against the Nifty and the NSE 500, there is a massive breakout. The charts are phenomenal and these companies are proxies to the India growth story,” he said.
Pharma and Healthcare still attractive
Even though investors may rotate towards higher-beta sectors during market rallies, Shah believes the pharmaceutical and healthcare sectors remain compelling investment themes.
He pointed out that the pharma sector has only recently emerged from a prolonged period of underperformance and may continue delivering superior returns.
“The pharma, healthcare and diagnostics trend is here to stay. The breakout happened only a few weeks ago and I believe this is still a good place to stay invested,” he said.
Global bull market supports equities
Shah remains optimistic about international markets, particularly the United States, Europe and parts of Asia.
He argued that global equity markets continue to benefit from strong momentum linked to artificial intelligence-driven growth and improving economic sentiment.
“The global bull market is here to stay. US markets remain at the forefront of the AI trade, while Europe and other Asian markets are also doing well,” he said.
Gold and Silver may be ready for a rebound
He noted that both gold and silver recently approached key support levels and may be positioned for a recovery.
“The time has come where the risk-reward is once again in favour of gold and silver investments,” Shah said.
(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.)
