Dharmesh Shah’s Top Picks for June 10 as Sensex Hits Record High, Nifty Soars to New Peaks

The 30-share BSE Sensex jumped by 1,720.8 points, or 2.29%, to reach a new record high of 76,795.31. It ended the day at 76,693.36, up 1,618.85 points, or 2.16%. Similarly, the NSE Nifty rose by 498.8 points, or 2.18%, to 23,320.20, just shy of its record intraday high by 18.5 points. It closed at an all-time high of 23,290.15, up 468.75 points, or 2.05%.

Why Did the Market Rise?

Vinod Nair, Head of Research at Geojit Financial Services, explained that the rise was due to positive expectations about a stable coalition government and the RBI’s revised growth forecast of 7.2% for FY25. These factors boosted confidence in the domestic market, helping it hit a new record high. Although inflation remains a challenge, investors are hopeful that the RBI will soon begin to lower interest rates.

In the U.S., the job market performed better than expected in May, adding 272,000 non-farm payroll jobs compared to the anticipated 180,000. This unexpected growth might delay interest rate cuts by the Federal Reserve, affecting market dynamics and strengthening the dollar.

What to Expect Next Week?

Arvinder Singh Nanda, Senior VP at Master Capital Services Ltd, says the market will be influenced by key domestic and global economic data next week. This includes India’s Wholesale Price Index (WPI) inflation, China’s Consumer Price Index (CPI) inflation, UK GDP data, U.S. core CPI and CPI data, U.S. Producer Price Index (PPI) data, and the Federal Reserve’s interest rate decision.

Market Outlook by Dharmesh Shah, Vice President, ICICI Securities

Dharmesh Shah highlighted that the Nifty 50 showed strong recovery from its 200-day EMA, indicating robust market strength. The Nifty 50 closed at its highest ever, recovering 10% from the week’s low in just three days. If the Nifty 50 stays above 23,400, it could reach 23,800 in the coming weeks. If it doesn’t, expect it to fluctuate between 23,400 and 22,600. Use any dips as buying opportunities, with immediate support at 22,600.

Shah’s positive outlook is based on:

• Bank Nifty: Recovered well and is expected to reach 51,000.
• Global Factors: Favorable conditions with possible interest rate cuts.
• Brent Crude: Prices are expected to stay between $75-$85.

Stock Recommendations by Dharmesh Shah

1. Larsen & Toubro: Buy between ₹3,440-₹3,535 with a target of ₹3,870 and a stop loss at ₹3,280.
2. Axis Bank: Buy between ₹1,166-₹1,188 with a target of ₹1,270 and a stop loss at ₹1,118.