Indian equity markets are attempting to hold above the crucial 24,000 mark, with investors closely watching whether the benchmark indices can sustain their recent gains.
According to Rohit Srivastava, Founder, Strike Money Analytics & Indiacharts, the technical setup continues to favour the bulls as long as key support levels remain intact, with banking and defence emerging as two sectors likely to outperform in the coming months.
23,800 Remains the Key Support for Nifty
Srivastava believes the market's immediate direction will depend on whether Nifty can defend the 23,800 level, which has repeatedly acted as a strong support.
"So, I have put 23,800 as the critical support that the market is trying to test again and again. That is where we left behind a gap on the 15th of June and, interestingly, we have not filled it, which makes it a good support. Now, as long as this support holds and we close positive today, the next target for the market is to cross the 25,000 mark in the coming weeks, and that is what we would be looking for. Similarly, in Bank Nifty, if I put the support range at around 59,956, we would be looking at it going towards 61,000 in the coming days," he said.
According to him, maintaining these support levels could pave the way for another leg of the market's uptrend.
Defence Weakness Is Only a Pause
While the Nifty Defence Index witnessed sharp selling pressure during the session, Srivastava does not see it as a reversal of the broader trend. Instead, he believes the decline is simply a temporary correction following a strong rally.
"So, it is just a pullback. The Defence Index was actually holding out against the market. It went up for almost seven-eight consecutive days, and we have seen a two-day pullback. So, it is probably just a pause in what is going to be a continuation of an uptrend. The Nifty Defence Index should be headed towards 10,700-10,800 in the coming weeks, so it would be a buy on dips as of now. We do have open recommendations on GRSE, that is Garden Reach, for our clients, so that is a particular stock that we like," he said.
His view suggests that investors should use short-term corrections as buying opportunities rather than interpreting them as a sign of weakness.
Banking Could Be One of the Best-Performing Sectors
The strong performance in both private and public sector banks has reinforced Srivastava's bullish outlook on financials. He believes the sector is entering a phase of catch-up after lagging the broader market for the past couple of years.
"Let me just highlight that we are SEBI-registered since I discussed the stock. Now, coming to banking, I do think that the banking sector as a whole is going to be one of the top-performing sectors of the coming year after having underperformed for a year or two before. In the previous cycle, it was lagging, especially private banks. There is a complete turnaround and catch-up in performance that is happening right now. In the next leg of growth, financials are going to play a very, very important part. I already mentioned the Bank Nifty levels that we are looking at, going towards 61,000 in the next move in the coming days, so I do not think you are going to see any weakness in the financial space," he said.
His outlook indicates that financial stocks could become a key driver of the next phase of the market rally, supported by improving sectoral momentum and strengthening technical indicators.
