Highlights
- Nifty could rally to 25,000 if the crucial 23,800 support level remains intact.
- Bank Nifty may climb to 61,000 as financials emerge as the market’s key growth driver.
- Defence sector pullback is a buying opportunity; Nifty Defence may target 10,700-10,800.
Amid improving market sentiment, market expert Rohit Srivastava remains constructive on Indian equities, expecting the Nifty to hold above the crucial 23,800 support and advance towards 25,000 in the coming weeks. He also sees Bank Nifty heading for 61,000, backed by strength in financials, while viewing the recent correction in defence stocks as a healthy pullback and a potential buy-on-dips opportunity.
Market outlook and key levels
Srivastava stated that Nifty is currently holding above the critical support level of 23,800.
“I’ve put 23,800 as the critical support. The market has been trying to test it repeatedly. That’s where we left behind a gap on June 15, and interestingly, it hasn’t been filled yet, which makes it a strong support level. As long as this support holds and we close positive today, I think the market’s next target is to cross the 25,000 mark in the coming weeks,” he said.
On Bank Nifty, Srivastava said that with a support range around 59,956, the index is projected to move toward 61,000 in the coming days. “I have the support range at around 59,956. As long as that level holds, we could see it move towards 61,000 in the coming days,” he said.
Despite a recent two-day pullback after a 78-day rally, Srivastava views this as a pause rather than a trend reversal. He anticipates the index heading toward 10,700-10,800 in the coming weeks and recommends a ‘buy on dips’ strategy.
“The Nifty Defence Index had been outperforming the broader market, rising for nearly 78 consecutive days, and we’ve now seen a two-day pullback. It’s probably just a pause before the uptrend resumes. I believe the Nifty Defence Index is headed towards the 10,700-10,800 range in the coming weeks. So, for now, it remains a buy on dips. We also have an active recommendation on Garden Reach Shipbuilders & Engineers (GRSE) for our clients,” Srivastava said.
Srivastava identifies banking as a top-performing sector for the year, driven by a turnaround in both private and PSU banks.
“I believe the banking sector as a whole is set to be one of the top-performing sectors over the coming year, especially after underperforming for the past one or two years,” said Srivastava, adding, “In the previous cycle, particularly private banks had lagged behind. I think we’re now witnessing a complete turnaround and a catch-up in performance. In the next leg of market growth, financials are likely to play a very important role.”
He believes the financial sector will play a pivotal role in the next leg of market growth and remains bullish on the space.
(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.)
