Top Stock Picks for Tomorrow: Dharmesh Shah of ICICI Securities Recommends Buying Infosys & IndusInd Bank
Stock Market News: After a record-breaking rise in the previous session, the Sensex and Nifty 50 took a breather on Friday and ended slightly down due to profit-taking. The Sensex dropped by 0.09% to 82,890.94, while the Nifty 50 fell 0.13% to 25,356.5.
However, for the week, both indices gained about 2%, marking the highest rise since the end of June. This week’s gains were driven by a 3% increase in consumer stocks, as steady monsoon conditions are expected to boost demand and volume. IT companies also rose by 2.8%, especially those with business in the US, as the market expects a Fed rate cut next week.
Important economic data like India’s WPI inflation, bank loan growth, trade balance, and US retail sales and Fed interest rate decisions will guide the markets next week, says Palka Arora Chopra, Director at Master Capital Services Ltd.
Market Outlook by Dharmesh Shah, ICICI Securities
The Nifty 50 hit new highs, helped by hopes for a US rate cut and lower inflation expectations due to good monsoon and lower oil prices. Strong foreign investor inflows and solid domestic liquidity also contributed to the 2% rise for the week. Mid-cap and small-cap indices gained 2.8% and 1.2%, respectively.
A strong bull candle formed on the weekly time frame indicates a continued uptrend. The index could gradually rise to 25,800, with support at 24,750. While volatility is possible around the Fed meeting, investors are advised to buy on dips.
Key observations:
- Private banks are showing strength, likely pushing the Nifty 50 higher.
- BFSI, IT, metals, and consumer sectors are expected to outperform.
- Foreign institutional investors (FIIs) have been net buyers in four of the last five sessions. With expected rate cuts in the US, FII funds may return to emerging markets like India, boosting liquidity.
- September historically presents buying opportunities, with an average 3% dip leading to strong returns in the following three months.
- Oil prices are trending down, with Brent crude expected to fall toward $67 in the coming months, with upside limited to $80.
Top Stock Picks:
- Buy Infosys: Current price ₹1,943, Target price ₹2,110, Stoploss ₹1,810.
- Buy IndusInd Bank: Current price ₹1,462, Target price ₹1,620, Stoploss ₹1,330.
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.
