Navigating Market Volatility: Rajesh Palviya Highlights Key Stock Picks and Banking Sector Trends

Rajesh Palviya from Axis Securities emphasizes to ET Now that the importance of a stock-specific approach in the current volatile market. He observes that many large-cap stocks are experiencing profit-taking, and the 25,000 level on the Nifty index may serve as a significant resistance zone during this pullback. Here are the key insights from his analysis:

Understanding Market Support and Resistance Levels

Palviya explains that the Nifty index recently found support around 24,700 and 24,800, but the market dynamics are shifting. The heavy call writing at the 25,000 strike indicates that this level could face selling pressure. While there’s been a pullback from an oversold position, the Nifty needs to close above 25,000 to confirm a stronger upward trend. If it falls below 24,700, it could continue its downward trajectory toward 24,500. Palviya suggests that the Nifty is likely to trade in the range of 24,700 to 25,000 in the coming days.

Banking Sector Performance

Palviya is optimistic about the banking sector, noting that the Bank Nifty has shown stronger momentum compared to the overall market. It has crossed the 50-day moving average, indicating a potential upward trend. He highlights that many large-cap banks, both private and public sector, have rebounded from oversold conditions. Private banks like ICICI Bank, Kotak Bank, and Federal Bank look particularly strong, while State Bank of India (SBI) has also shown a solid recovery. If SBI holds above 820, it could rally toward 845-850.

Focus on Stock Selection

Palviya stresses that this is a stock picker’s market, with selective stocks outperforming the broader market. He recommends focusing on the banking sector, especially ICICI Bank, which he believes could reach a target of 1,300. He suggests buying ICICI Bank with a stop loss at 1,240. Another stock to watch is Bombay Dyeing, which has recently broken out of a consolidation phase, and he sees potential for it to reach 264, advising a stop loss at 243. In the metals sector, National Aluminium is showing strength, with a target of 243 and a stop loss of 226.

Overall, Palviya encourages investors to remain selective and cautious while navigating the current market conditions.