Nifty has slipped below 25,900, signalling short-term weakness, but its broader uptrend remains intact, says HDFC Securities Vinay Rajani. He has also flagged 26,060 as the key resistance for a bullish reversal and 25,700 as crucial support. A break below this level could turn the trend into a positional downtrend.
Vedanta shares surged to a 52-week high after the NCLT approved its demerger plan, creating five distinct entities. This approval provides significant relief following earlier government objections. The company is now set to implement the scheme, aiming for focused, sector-leading businesses.
Market participants should brace for a phase where easy returns from broad themes may fade. Selectivity, precise bet sizing, and a sharp bottom-up approach will be crucial for portfolio construction in the coming months. Investors should focus on direct beneficiaries of government initiatives like MSME expansion, with credit and hiring-linked plays showing promise.
PB Fintech shares fell amid concerns that the proposed Insurance Bill 2025 could allow IRDAI to cap insurance agent commissions, raising regulatory risks for digital insurance marketplaces and intermediaries.
Market expert Nitin Bhasin anticipates a phase of moderation for 2026, with largecaps likely to trade sideways while midcaps and smallcaps face sharper earnings moderation. He favors IT, FMCG, and pharma, and highlights opportunities in MSMEs and companies with global revenue streams, advising patience and sectoral selectivity.
Investors are reassessing dominant themes like AI, finding comfort in resilient US economic fundamentals and a selective outlook for India. While the AI trade faces skepticism regarding data center ROI, US markets show no immediate red flags. India's IT services face valuation risks, with a preference for large-cap stocks due to historical mean reversion in mid- and small-caps.
