Market Expert On Nifty's Sharp Rebound, But Questions Rally Sustainability Amid Sectoral Weakness

In this insightful episode of Business Today TV, market expert Kush Ghodasara delves into the recent rebound of the Nifty 50 index, analyzing the factors behind its recovery and assessing its sustainability. He highlights that value buying in sectors like FMCG and real estate has contributed to the market's bounce-back. However, Kush Ghodasara cautions that without consistent follow-up buying and active participation from Foreign Institutional Investors (FIIs) in the cash segment, this rally might be short-lived. He identifies 22,750 as a critical resistance level and advises maintaining short positions with appropriate stop-losses. Regarding the financial sector, Kush Ghodasara observes persistent pressure, particularly among private banks such as Axis Bank and HDFC Bank, which struggle to maintain key levels. He notes the lack of synchronized performance across banking stocks, with different segments like PSU banks, NBFCs, and private banks not rallying in unison. This disjointed movement suggests underlying weakness in the financial sector, making the current market momentum uncertain. Kush Ghodasara emphasizes the importance of the Nifty Bank index surpassing 48,400 to confirm a sustainable recovery. Turning to the real estate sector, which has recently outperformed with a 3.8% surge, Kush Ghodasara remains cautious about the longevity of this uptrend. He points out that many real estate stocks are nearing previous resistance levels and that the current rally may be technically driven due to oversold conditions rather than strong fundamentals. Additionally, seasonal factors like reduced construction activity during the Holi period, when labourers return to their hometowns, could dampen momentum. Kush Ghodasara advises high-risk traders to consider short-term opportunities in stocks like DLF but recommends that short-term investors use this rally to exit positions at higher levels.