The Nifty 50 edged up 176 points to 22,154 on Tuesday, buoyed by gains across the IT and financial sectors. The IT index, a bellwether for tech stocks, surged 0.9% to 12,148, while the financials index climbed 0.7% to 5,120.
Market sentiment remains cautious, with the index trading near a 22,000–22,500 support zone, according to Goldilocks Global Research founder Gautam Shah. Shah warns that the broader market could stay in a “stock‑picker’s” mode, favoring micro‑caps and small‑caps that offer value and reasonable valuations.
Shah’s bullish stance on IT is underpinned by a view that the worst of the sector’s volatility has passed. He projects that large‑cap and mid‑cap IT names could lift the index further, potentially pushing Nifty toward 23,500 and, in a best‑case scenario, 24,000. The IT sector’s resilience is mirrored in its current 12‑month low of 11,600, a 5% rally from the previous quarter.
Financials, too, are on a comeback trail. The sector’s underlying business fundamentals have shown steadier revenue growth, with leading banks posting a 4% YoY profit jump last quarter. This sector’s performance could provide a cushion for the index as it navigates the near‑term recovery.
Outside of tech and banking, Shah highlights FMCG and metals as value plays. The FMCG index, after a prolonged slump, has rebounded 3% in the last week, signaling a possible bottom. Meanwhile, non‑ferrous metals have been rallying, with the metals index up 1.2% to 2,400, driven by growing demand for copper and aluminium.
Looking ahead, traders should monitor the Nifty’s position around the 22,500 support level. A break below could signal a return to bearish territory, while a bounce could validate Shah’s 23,500 target. The next earnings cycle and the upcoming RBI policy review will also be key catalysts for market direction.