Higher bottoms suggest limited downside for Nifty: Rohit Srivastava

Market Overview - The Nifty index shows fragile movement but indicates a slow improvement with the formation of successive higher bottoms since early December [1][2][8] - The index has consistently held above previous lows, suggesting that downside pressure is weakening [2][8] - Current strong support is around the 20-day moving average at approximately 26,037 on the Nifty [2][8] Breakout Levels - A significant breakout point is identified at around 26,540, where an uptrend may accelerate [3][8] - Heavy sectoral rotation is currently preventing sharp upward movements in the indices [3][8] Sector Analysis - Banking is highlighted as a standout sector, with Bank Nifty consolidating and building a base near 59,800 [6][9] - Interest rate-sensitive sectors, including banking, metals, and autos, are expected to continue outperforming [6][7][9] - Early signs of momentum are returning to real estate stocks, with DLF mentioned as a stock beginning to participate in the broader market move [7][9] Leadership and Market Dynamics - Market leadership is shifting, with strength rotating from previously dominant stocks like Reliance Industries to sectors such as metals and banking [4][8] - Selective momentum is emerging in second-line private lenders like RBL Bank, IDFC First Bank, and IndusInd Bank, which are showing better relative strength compared to larger banks [9]