According to Rohit Srivastava, Founder of Strike Money Analytics & Indiacharts, the ongoing market correction may be closer to its conclusion than many fear, with Nifty approaching a key support zone around 23,077. As per The Economic Times, Srivastava noted that from the bottom made in April at ₹22,182, and the peak at around ₹24,601, a 61% retracement would yield a level closer to ₹23,077. This represents approximately 80 to 100 points still on the downside, but the risk may be limited given this support level. The assessment suggests that while some near-term weakness cannot be ruled out, the broader risk-reward equation may gradually begin shifting in favour of investors willing to wait for confirmation of a market turnaround. Latest reports from CNBC TV18 confirm that Srivastava believes Indian markets are nearing a critical support zone and may be in the final phase of the current pullback, with the broader market remaining resilient despite weakness in benchmark indices.
IT stocks have staged a dramatic recovery, with Infosys shares jumping nearly 6% on Tuesday to hit a near-six-week high of ₹1,279 after a 10% rally in three days. The Nifty IT index gained over 4% while the broader Nifty 50 index was up only 0.5% on Tuesday afternoon, highlighting the sector's outperformance. This rally comes after a strong correction earlier this year, following the launch of plug-ins for AI startup Anthropic's Claude Cowork agent, which could automate tasks across legal, sales, marketing, and data analysis. According to Axis Securities, the IT services sector reported weak-to-moderate Q4FY26 performance amid challenging demand environment, but profitability remained broadly stable supported by rupee depreciation and improved employee utilisation. However, Srivastava cautioned that IT is not a sector he recommends at any point in time till the worst is very, very certainly over. Latest analysis from CNBC TV18 shows Srivastava remains cautious on IT and FMCG stocks during this market phase.
Srivastava identified banking as a good place to invest during the current market correction, citing an interesting divergence between banking and Nifty performance. As reported by The Economic Times, Bank Nifty has not broken the lows that it made in May, whereas Nifty has already done so, indicating a positive divergence between the two. This suggests that investors looking for relative strength amid market volatility may find banking stocks better positioned than several other sectors. The comments indicate that banking comes across as one segment where investors would want to find ideas to buy into during this dip, making it a preferred bet over the IT sector which continues to face challenges. Recent market action supports this view, with Federal Bank recommended as a buy target at ₹322 with stop loss at ₹289, displaying notable strength after emerging from a consolidation phase.
One of the most constructive sectoral outlooks offered by Srivastava was for pharmaceuticals, with significant technical breakout potential. As reported by The Economic Times, the pharma index is on a pretty strong footing with a breakout of a two-year consolidation. The Nifty Pharma index broke beyond 23,500, representing a significant technical breakout that could support sustained gains over the medium to long term. Srivastava noted that once the index is done pulling back to take support there, it should be headed towards possibly 30,000-plus on the pharma index in a one-to-one-and-a-half-year time horizon. This represents a substantial upside potential from current levels, making pharma one of the most attractive sectors for long-term investors. Latest market data shows the Nifty Pharma index rose 0.53% to 24,213.45, extending gains for the second consecutive trading session with notable individual stock performances including Ipca Laboratories up 2.62%, Aurobindo Pharma up 2.36%, and Laurus Labs up 2.14%.
Market participants remained cautious ahead of the Reserve Bank of India's monetary policy announcement scheduled for 5 June 2026, with investors closely monitoring the central bank's policy stance and commentary on economic growth and inflation. At 14:30 IST, the S&P BSE Sensex rose 99.19 points or 0.13% to 74,444.36 while the Nifty 50 index added 27.75 points or 0.11% to 23,433.35. The broader market outperformed with BSE 150 MidCap Index rising 0.57% and BSE 250 SmallCap Index adding 0.66%. Market breadth remained positive with 2,210 shares rising and 1,873 shares falling on the BSE. The NSE's India VIX rose 1.84% to 15.98, indicating some increased volatility expectations. While analysts see improving technical indicators and recovering sentiment in select sectors, the overall market outlook remains cautious, with investors advised patience as the market potentially turns upwards.
