“This is a buy on dip market,” he told ET Now, “but you have to wait for the right levels.”
The levels to watch: Nifty 23,700–23,800, Bank Nifty 55,000
Rudramurthy said the ideal entry zone on Nifty is between 23,700 and 23,800 — roughly 200 to 300 points below current levels. On Bank Nifty, the corresponding level is around 55,000 to 55,100, implying a further correction of about 1,000 points. With monthly expiry scheduled for the following Tuesday, he expects Monday or Tuesday to offer that window.
Three technical signals are keeping him cautious in the near term: Brent crude decisively above $100 per barrel, the rupee-dollar rate trading above 94, and a rising VIX. Until these stabilise, he advises waiting rather than chasing.
Where the strength lies: pharma, power, select metals
Within the market, Rudramurthy sees clear relative strength in three pockets. Pharma stocks broke out recently and are now consolidating — a pattern he reads as an accumulation opportunity. Power and energy continue to show momentum, and select metal stocks — particularly aluminium plays — are outperforming the broader market.
His specific stock picks in these sectors include NTPC, Power Grid, JSW Energy, and Coal India in the power space; REC and PFC among PSU finance companies; SBI from the PSU banking space; and JSW Steel, Nalco, and Hindalco from the metals pack.
IT: a clear avoid — do not catch the falling knife
On IT, Rudramurthy’s stance is unambiguous — stay away, even at current levels. Weak earnings results have confirmed the sector’s near-term vulnerability and he warns against trying to buy the dip in a sector that is still in a downtrend.
Two specific trade calls
Rudramurthy offered two concrete trading ideas. On the sell side, he recommends shorting Persistent Systems via futures, citing weak earnings. His downside target is around 4,600 with a stop loss at 5,050.
On the buy side, he likes Glenmark Pharma, pointing to a clear bottom formation and accumulation pattern in the stock, with pharma broadly breaking out. His targets are 2,550 in the near term and 2,800 eventually, with a stop loss at 2,200.
The broader message: be selective, respect the technical signals, and let the market come to you rather than forcing entries at stretched levels.