According to ET Now reports, Ashish Chaturmohta believes the broader market is likely to remain rangebound due to concerns around the rupee, crude oil prices and inflationary pressures globally. The Nifty could trade between 23,000 and 24,500 in the near term, with large caps facing limited upside unless foreign institutional investors (FIIs) return aggressively. Chaturmohta noted that downside for large caps may remain protected near the 22,500-23,000 zone, while if geopolitical tensions ease, the Nifty could move towards 24,500. However, he cautioned that large cap outperformance may remain difficult until FIIs turn buyers again. As per The Economic Times, the Nifty oscillated in a 542-point range as the index tested a high of 23,859.90 while slipping to a low of 23,317.10 during the week, with the headline index closing with a net gain of 75.80 points (+0.32%).
According to The Economic Times, the broader technical structure of the Nifty remains neutral-to-cautious as the index continues to hover below a crucial resistance zone near 23,800-23,850. The India VIX declined 4.68% to 17.91 on a weekly basis, indicating a temporary moderation in market anxiety. Immediate resistance levels are placed at 23,800 and 24,050, while supports come in at 23,500 and 23,350. The weekly RSI stands at 42.35 and remains neutral, showing no meaningful bullish or bearish divergence against price. The weekly MACD remains below its signal line and continues to stay in bearish territory, although the histogram has started to contract, hinting at weakening downside momentum. Any sustained move beyond 23,800 can trigger short covering and improve the near-term trend structure, while failure to do so may keep the markets vulnerable to renewed selling pressure.
As reported by ET Now, the real opportunity lies in the small and midcap space, where strong earnings growth, rising capex and improving asset turnover are driving re-rating across sectors. Chaturmohta highlighted AI, data centres, capital markets and capital goods as some of the strongest emerging themes in the market. He noted that many small and midcap companies in these sectors are witnessing strong capacity utilisation and expansion plans, which could support sustained earnings momentum despite inflationary pressures on margins. Selective stock picking remains critical as alpha generation opportunities are concentrated in specific themes and businesses. According to The Economic Times, the Relative Rotation Graph (RRG) shows that Midcap 100, Energy, Pharma and the Media Indices are inside the leading quadrant, likely to relatively outperform the broader Nifty 500 Index.
According to ET Now reports, Chaturmohta remains particularly bullish on the pharma CDMO space, with companies such as Laurus Labs, Biocon, Navin Fluorine International and Syngene International seeing strong traction in contract development and manufacturing opportunities. The growth in CDMO businesses could create meaningful operating leverage and drive earnings growth for these companies over the medium term. He also remains positive on the capital market theme, pointing to the continued strength in BSE and MCX shares, which have been hitting fresh highs. Among brokers, he highlighted Angel One, citing its strong market share in both cash and derivatives segments, along with expansion into mutual funds and wealth management.
As reported by ET Now, within capital goods, Chaturmohta said transformer and HVDC-related businesses remain well placed due to robust order books extending till 2030, with Siemens Energy, Hitachi Energy India and GE Vernova as companies expected to benefit from the trend. He also remains constructive on CG Power and Industrial Solutions due to its exposure to both transformers and semiconductors. On banking stocks, Chaturmohta said the market still lacks clear strength from large private sector banks, which is keeping the benchmark indices rangebound. However, he pointed out that ICICI Bank and Axis Bank are showing signs of bottoming out and could witness a meaningful reversal going ahead. According to The Economic Times, the Nifty PSE Index has slipped into the weakening quadrant, with the Infrastructure and PSU Bank Index also inside this quadrant, suggesting a collective slowdown in their relative performance.
According to ET Now reports, LIC and Page Industries both saw gains after reporting strong earnings, highlighting the strength in selective stock performance. The discussion emphasized that much of the negative impact from the ongoing West Asia crisis appears to have already been discounted by the market, especially after the sharp fall in the rupee and spike in crude oil prices. Chaturmohta noted that the ongoing West Asia crisis largely appears to be priced in, with the market showing resilience despite global uncertainties. As per The Economic Times, the coming week is truncated because of the May 28 trading holiday on account of Eid, and this may keep volumes relatively light with stock-specific moves dominating the sessions.
