Benchmark Nifty50 closed April's final trading session on a subdued note, slipping a tad below the 24,000-mark in highly volatile trade.

However, the month gone by still offered a few positives, with the market capitalisation (m-cap) of all listed domestic companies soaring by nearly Rs 51 lakh crore to Rs 463.3 lakh crore.

The NSE benchmark also reflected the recovery momentum as Nifty50 advanced 5.81 per cent in April. Against this backdrop, a key question arises: where is the market headed, and which sectors should investors focus on?

Kranthi Bathini, Equity Strategist at WealthMills Securities, said, "Indian markets have been quite volatile in the recent past. Crude oil, which looked like it was coming under control, moved above $120 per barrel this week. This has been creating some kind of knee-jerk reaction for the market. There are unfulfilled agendas everywhere, unfulfilled statements by policymakers across the globe, especially by the Trump administration. And there is no concrete resolution yet for the West Asia conflict as of now. So the markets have been volatile, and they have been responding as per the movements of crude oil prices or concerns around them. Foreign portfolio investors (FPIs) have been net sellers in the month of April, and despite that, it is thanks to the strong domestic liquidity that is driving the market at this point in time and supporting the markets."

He added, "By and large, markets are stuck in a range-bound state at this point in time. 24,500 to 24,750 is the crucial level to look for Nifty on the upside, and 24,000 is the level to watch on the downside. Markets are going to be in a range of 500 points to 750 points for Nifty. These are the crucial levels. We need to see Nifty at the bottom near 24,000 and at the top around 24,500 to 24,750. This is the range one needs to look at in the medium to short term. And if crude oil prices cool off due to any reopening of the Strait of Hormuz, that can be a positive. But we need to wait for the news. If crude oil prices come back to below $100 or $90 per barrel, that will be extremely crucial for India in the medium to short term. If crude prices remain elevated for a much longer period, then an inflationary scenario will arise in India. If crude oil prices go up -- and till now oil marketing companies have not increased petrol and diesel prices -- but if they pass on the rise in crude prices to consumers, then inflation will go up."

Q4 FY26: Stable earnings, no major negative surprises

Bathini also said, "Coming back to the earnings season, that is a concern. We are having a decent earnings season. There were absolutely no negative surprises. Despite the challenging times, managements are pretty much confident. They are demonstrating and expressing their confidence with respect to future growth in the coming quarters. IT companies have been going through a roller-coaster ride. Sometimes we also witness some kind of bottom-fishing in the IT stocks. Defence stocks have been quite resilient. Engineering, consumer, and power infrastructure are also showing resilience in the medium to short term."

Where should investors allocate now?

He further stated, "The sectors to look forward to are power, engineering, capital goods, and defence. Defence stocks have been quite resilient in this rally in the recent past. But the Indian market texture, if you see, is a 'buy-on-dips' and 'sell-on-rallies' kind of market in the medium to short term. Investors need to have two types of strategies. One is the core portfolio -- this is buy on dips -- and there should be a satellite portfolio -- that is sell on rallies. So one needs to balance between the 'buy-on-dips' and 'sell-on-rallies' kind of strategy. This places an advantageous strategy for investors to navigate in these volatile and choppy markets."

Vinod Nair, Head of Research at Geojit Investments, said, "Despite the volatility, early Q4 FY26 corporate earnings provided encouragement, prompting investors to adopt a constructive stance to avoid missing the momentum. While the sell-off was broad-based, defensive and demand-led sectors such as pharmaceuticals, healthcare, telecom, and energy outperformed."

He added, "Looking ahead, markets remain hopeful for a resolution, as there will be light at the end of the tunnel, but the tunnel looks rather lengthy at this moment. The market is likely to respond to daily noise until any clarity is reached."

Nair expects the Nifty50 to remain range-bound in the near term, likely to oscillate between 23,500 and 24,500 levels.