“What made it worse was the banking sector,” said Ajit Mishra, SVP – Research at Religare Broking, in a conversation with ET Now. “Private banks have not participated in this recovery at all. Today, with heavyweights dragging, sentiment was further dampened.”
The Nifty slipped below the crucial 24,800 mark—its 20-day exponential moving average (EMA)—a breach that traders were hoping to avoid. Mishra warned that the index may slide further towards 24,600–24,630, a zone aligned with the 100-day EMA. “The recovery has derailed. From here, consolidation with a negative bias seems more likely in the days ahead,” he noted.
But it wasn’t all gloom. In fact, pockets of strength stood out, particularly in FMCG and autos. Maruti Suzuki surged nearly 2% with strong volumes, scaling record highs. “It looks like shorts are trapped, and that’s fuelling further upside,” Mishra explained. Alongside, FMCG biggies like HUL and Nestlé managed to hold their ground, while Marico, Godrej Consumer, and Britannia also remained resilient.
“Even if the market weakens, FMCG and auto stocks should continue to outperform. The momentum in stocks like Maruti, TVS, and Eicher looks intact. From FMCG, I’d keep a close eye on HUL, Britannia, Marico, and Godrej Consumer,” Mishra suggested.
On strategy, he advised balance—maintaining exposure on both sides of the trade. “Godrej Consumer has rebounded smartly and is holding firm even during profit-taking phases. One can accumulate at current levels for a target of ₹1,320 with a stop at ₹1,228,” he said.At the same time, he cautioned against the banking space. “With the index slipping below critical support, more pressure is likely. IndusInd Bank stands out as a shorting candidate, with a target of ₹720 and a stop loss at ₹788.”For now, the market mood remains clouded with uncertainty. Banking weakness has soured the broader sentiment, but defensive plays in FMCG and steady performers in autos are offering traders some comfort. The coming sessions, analysts say, will be a test of whether these pockets can hold their ground against the broader drag.