Stay calm, stay invested, says Dipan Mehta; prefers PSU banks & NBFCs among financials

The banking sector is experiencing mixed signals with some private banks facing pressure while PSU banks and NBFCs are being highlighted for potential. Global market jitters and oil price movements are key factors influencing sentiment.

Look for opportunities in fundamentally strong PSU banks and well-managed diversified NBFCs, potentially on dips, with a long-term investment horizon.

For Indian markets, this story mainly matters for the Banking, Financial Services, Automobiles pocket. The current signal is bullish, so traders should watch whether the effect spreads across the sector or stays limited to a single name.

Watch whether the market validates this read through price action, volume, and breadth. If the headline matters, the signal should show up in execution, not just in commentary.

• •Dipan Mehta advises investors to exercise patience and resist drastic portfolio changes.
• •He highlights oil prices as a key indicator for market stability.
• •Mehta suggests a cautious approach to banking, favoring PSU banks and diversified NBFCs.
• •He also sees potential in EV-focused auto players and currency-driven exports.
• •Risk flag: Global market volatility and rising oil prices could negatively impact overall market sentiment.