Nimesh Chandan backs private banks, cyclicals as valuations turn attractive

Despite recent market volatility and some banking stocks being top losers, expert opinion suggests underlying strength and attractive valuations in the banking sector. Focus on banks with strong asset quality and credit growth.

Look for entry points in private banking stocks that have corrected recently, with a long-term accumulation strategy, keeping an eye on NIM and asset quality trends.

For Indian markets, this story mainly matters for BAJAJFINSV, ICICIBANK, KOTAKBANK and the Financials, Materials, Industrials pocket. The current signal is bullish, so traders should look for follow-through in price, volume, and sector breadth instead of reacting to the headline alone.

Watch whether the next market session confirms the setup described here: Nimesh Chandan, from Bajaj Finserv AMC, is advocating for specific sectors, potentially boosting sentiment for the parent company's financial services offerings. Mentioned as a top loser in recent trading, but falls under the 'private banks' category which Chandan backs, suggesting a potential rebound. Also track volume confirmation, sector participation, and whether the move holds beyond the first reaction.

• •Indian markets are experiencing a temporary disruption, not a fundamental shift.
• •Nimesh Chandan of Bajaj Finserv AMC sees this as a chance to buy good companies at attractive prices.
• •Financials, materials, and industrials are favored sectors.
• •Consumption is recovering broadly.
• •Long-term investors can build positions for future growth.