Dharmesh Shah of ICICI Securities Recommends Top Stock Picks for Monday

Stock Market News: On Friday, the Sensex and Nifty 50 reached record highs during intraday trading but ended slightly lower due to profit-booking in the IT, FMCG, and healthcare sectors. Fresh inflows of foreign funds and stable crude oil prices helped the markets, but the global stock trend was weak, which affected sentiments.

Markets surged for the second day in a row ahead of the Lok Sabha election results on June 4. The Sensex hit a new all-time high of 75,636.50 but closed 8 points lower at 75,410.39. The Nifty 50 reached a new high of 23,026.40 but ended 11 points lower at 22,957.10.


Vinod Nair, Head of Research at Geojit Financial Services, said global market sentiments remained muted despite the US FOMC minutes suggesting a sustained hawkish stance on policy rates. US unemployment claims declined more than expected, business earnings were steady, and inflation remained high, giving the Fed no reason to lower interest rates.

Large caps are taking a backseat as the domestic market reaches new highs. PSU banks and defense stocks are performing well, leading to a significant rerating of the BSE PSU index, according to Nair.

Market Outlook by Dharmesh Shah, Vice President, ICICI Securities:

The Nifty 50 index rose and reached a new high of 23,026, forming a strong bull candle. The midcap index also continued its upward trend. Dharmesh Shah expects the Nifty 50 to reach 23,400 in the coming weeks. He highlighted the faster pace of retracement and robust price structure as positive signs for continued growth.

Shah believes market volatility will remain high due to the ongoing election and Q4 earnings season. He advises investors to focus on the long-term uptrend and use any market dips as buying opportunities. He has revised the support base upward to 22,400.

Top Stock Recommendations:

Buy Reliance Industries Ltd (RIL) in the range of ₹2,900-2,965 for a target of ₹3,270 with a stop loss of ₹2,765.

Buy NTPC in the range of ₹366-376 for a target of ₹408 with a stop loss of ₹346.

Disclaimer: The views and investment tips expressed by investment experts on Sharepriceindia.com are their own and not those of the website or its management. Sharepriceindia.com advises users to check with certified experts before taking any investment decisions.​​

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