Stock Market Update: ICICI Securities Reveals Top Stock Picks
On Friday, the Indian stock market continued its longest winning streak of the year, with the Sensex and Nifty 50 rising for the seventh day in a row. The Nifty 50 closed at 24,823.15, up 0.05%, while the S&P BSE Sensex gained 0.04% to end at 81,086.21. Experts believe this rise is driven by expectations of a US rate cut and consistent investments coming from within India.
After Jerome Powell hinted that the US Federal Reserve might start cutting interest rates in September, global stocks surged. This boosted the S&P 500 by 1.1%. The Dow Jones also climbed 462 points (1.1%) to close above 41,000 for the first time since July, and the Nasdaq composite rose by 1.5%.
Market Outlook by Dharmesh Shah of ICICI Securities
Dharmesh Shah, Vice President at ICICI Securities, noted that the Nifty 50 started the week strong and maintained upward momentum throughout. The market is expected to continue trading with a positive bias, staying within a range of 25,200 to 24,400 points, influenced by global trends. He recommends buying on dips, as strong support is found at 24,400.
Shah’s optimism is based on several factors:
A) Despite global market volatility, the Nifty 50 has not dropped more than 5% or for more than two weeks at a time this year. After each minor dip, the index has surpassed its previous highs.
B) The Bank Nifty closed above the previous two weeks’ high of 50,800, signaling a potential upward move. If this continues, it could push the Nifty 50 higher, as Bank Nifty contributes 32% to the Nifty 50’s overall performance.
C) Market breadth has improved, with 60% of stocks in the Nifty 500 trading above their 50-day moving average, up from 48% last week.
D) Global markets, led by the US, remain strong, with the S&P 500 just 1% away from its all-time high, providing a cushion for Indian markets.
Shah expects sectors like Consumption, IT, and Pharma to outperform, while PSU Banks, Metals, and Capital Goods could offer good opportunities after their recent corrections. He also suggests focusing on quality stocks with strong earnings potential.
Top Stock Picks from Dharmesh Shah
- HDFC Life Insurance Company Ltd
- Buy Range: ₹700-728
- Target Price: ₹810
- Stop Loss: ₹654
- Natco Pharma Ltd
- Buy Range: ₹1,510-1,555
- Target Price: ₹1,700
- Stop Loss: ₹1,425
These recommendations are based on the current market trends and technical analysis. Investors are advised to keep an eye on global developments and trade cautiously.
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.
