Nifty may hit fresh record highs soon; buy on every dip, says CA Rudramurthy BV – News Air Insight

Indian markets ended the week on a strong note, with the Nifty50 breaking above the key resistance level of 25,200, signaling a bullish trend ahead. According to CA Rudramurthy BV, MD, Vachana Investments, the market structure has decisively turned positive, and investors should continue adopting a “buy on dips” strategy.

“The trend which was earlier down has now reversed. We are now seeing a higher-top, higher-bottom formation in the Nifty. A close above 25,200 is very bullish,” Rudramurthy told ET Now. “I would not be surprised to see all-time highs coming in Nifty and Bank Nifty within this calendar year or definitely by the end of FY25.”

He pointed out that Nifty spot at 25,280 and Bank Nifty above 56,200 reflect strong market momentum, supported by better-than-expected Q2 earnings, the recent GST rate cut, and the RBI’s liquidity support.
“After a year of muted returns, valuations are now more attractive,” he said.

Sectors to Watch: PSU banks, OMCs, metals, and new-age stocks

Rudramurthy highlighted that the market rally is broad-based, with several sectors showing strength.
“PSU banks, oil marketing companies (OMCs), and metals all look strong. Even new-age platform companies like Paytm and Nykaa are set for solid performance,” he said.

He sees any short-term profit booking in metals as an opportunity to accumulate.

Top stock picks: Paytm and IOC

On the stock front, Rudramurthy’s top buy ideas are Paytm and Indian Oil Corporation (IOC).
He expects Paytm’s stock to hit ₹1,400 in the short term and ₹2,000 over the next two years, backed by strong execution and a favorable digital payment outlook.

“Paytm is a buy at all time frames — short term or investment — with a stop loss of Rs 1,230,” he added.

For IOC, he sees strong upside due to stable crude oil prices and robust refining margins.

“IOC is a mouth-watering buy at current levels. It has solid support at ₹150 and targets of ₹180 and ₹200,” Rudramurthy said.

He also remains bullish on other OMCs such as BPCL and Hindustan Petroleum (HPCL).

Outlook: Market headed higher

With earnings season off to a solid start, macroeconomic stability, and improving liquidity, Rudramurthy believes the bullish sentiment will sustain in the coming weeks.

“This is a stock picker’s market. Investors should use every dip as a buying opportunity,” he concluded.