Market no longer reacting to bad news
The most telling signal for Rudramurthy is how the market has stopped responding to negative news from the geopolitical front. War-related headlines that would have triggered sharp selloffs earlier are now being shrugged off. Add to that three consecutive days of FII buying, a falling volatility index, and broad participation from mid and smallcap stocks — and the picture becomes clear.
“This market cannot be shorted now,” he said plainly. “Any negative news from the war front and you get any dip — that will be a great buying opportunity.”
Nifty targets 24,800 to 25,000
After rallying roughly 2,250 points from a low of around 22,200, the Nifty has now crossed the important 24,400 zone. Rudramurthy sees the next leg heading toward 24,800 to 25,000. He does not expect a sharp V-shaped recovery back to all-time highs immediately, but describes this as a steady, grinding uptrend where dips will be shallow and short-lived.
His advice is straightforward — those already holding long positions should continue to do so. Fresh buyers should wait for dips rather than chasing current levels, given the significant rally already in place.
Bank Nifty has one key level to watch
On Bank Nifty, Rudramurthy identifies 57,100 as the critical closing level to watch. A sustained close above this mark could open up another 2,000-point move on the upside. However, he believes Nifty will be relatively stronger than Bank Nifty in the near term.
Metals, FMCG, and power lead the sector picks
Among sectors, metals stand out as the strongest on relative strength charts. Within metals, aluminium stocks are particularly attractive — Hindalco, Vedanta, and National Aluminium are his specific mentions in this space. FMCG is another sector showing strong momentum, as is the power and energy space. All three themes, he says, can be played on the long side with conviction.
Largecap stock ideas for long-term portfolios
For investors looking to build a long-term portfolio using only largecap names, Rudramurthy points to ICICI Bank, which recently delivered strong quarterly results and still looks attractive at current levels. Asian Paints and Larsen and Toubro are his other largecap picks, both of which he describes as well-positioned for sustained outperformance.
Two specific trading calls for near-term gains
Beyond the broad market view, Rudramurthy shared two specific buying opportunities for near-term traders.
The first is Varun Beverages, available in the futures segment. The stock has built a strong base near the 440 level and is bouncing upward from there. He recommends buying at current market price with a target of 510 and a stop loss at 460.
The second pick is GNFC, a cash market stock. Like Varun Beverages, GNFC has formed a solid bottom and is showing relative strength. He sees at least a ten percent upside from current levels, with a target in the range of 540 to 550 and a stop loss placed at 475.
The bigger picture
The convergence of falling volatility, returning FII flows, broad market participation, and price resilience in the face of bad news is a rare combination — and one that experienced traders take seriously as a bullish signal. Rudramurthy’s message to investors is consistent: stop waiting for a crisis that may not come, and start treating every dip as the opportunity it is.