Market Outlook: Autos, Defence and PSU Stocks Lead Buying as Nifty Holds Key 24,000 Support

-Kruti Shah, Quant Analyst, Equirus Securities.

Sector rotation remains active, with Autos, Defence, PSU banks and power PSUs witnessing renewed buying, while cement and hospital stocks faced selling pressure. Delivery-based activity has also strengthened across select ETFs. The mid-cap segment continued to attract strong traction, with the index scaling incremental highs

Globally, crude witnessed whip saw move while the S&P 500 has moved above 7,800 but continues to face resistance. Overall, Market remained add on decline but a sustained move above 24,500 would be required for an upward shift in NIFTY’s trading range.

Technical analysis

NIFTY is likely to remain range-bound with a mildly constructive bias, client SSF longs continued to rise since two weeks however, FII participation turned mute after initial Index based short covering. The index has held above the 24,000–24,200 zone through most of the results season, making 24,000 a key downside support. However, fresh call writing around 24,800–25,000 CE could cap the near-term upside. BANKNIFTY continues to witness long addition in the 57,000–57,500 zone, although private banks have lagged while PSU banks have outperformed.