Rohit Srivastava, the Founder of Strike Money Analytics and Indiacharts, stated that both the daily and weekly RMI momentum indicators currently show bullish signals, eliminating any doubt about further market weakening. As the new series unfolds, volatility is prevalent due to significant upcoming events, including announcements from former President Trump and India’s RBI monetary policy update.
When examining Indian benchmark indices, Srivastava pointed out that, excluding external news influences, the trend appears positive. The markets have managed to retrace approximately 50% of the gains from the previous week’s rally, which suggests a favorable risk-reward situation upward. As major events unfold, the market has already adjusted, and subsequent improvements are expected once the news is fully digested.
Discussing the real estate sector, Srivastava mentioned the positive reversal seen in the Nifty Realty index following recent declines. However, he noted that while the market might see short-term gains, a more substantial growth phase may take longer, potentially spanning three to six months, due to required consolidation.
Regarding potential sector investments, Srivastava emphasized the resilience and potential in the financial sector, especially within NBFCs and private banks, which are attracting substantial investment. Globally, there is a shift from highly valued US equities to more attractively valued markets in Europe and China. Domestically, a similar transition is occurring, with investments moving from overvalued sectors to more undervalued ones, like financials, PSU stocks, and metals.
Within the financial sector, Srivastava finds NBFCs particularly attractive, noting their recent price corrections as an ideal opportunity for investment. This optimism is further supported by the RBI’s measures to lower risk weightages, combined with expectations of lower interest rates, enhancing the segment’s outlook.
