Nifty Set to Reach 24,500 Next Week, Says Dharmesh Shah—Discover His Top 2 Stock Picks!
India’s equity markets exhibited robust performance as the week concluded, with Dharmesh Shah, Head of Technical Research at ICICI Direct, asserting that further upside is anticipated. Shah outlines a bullish outlook for the Nifty 50 Index, forecasting an ascent toward 24,500 while citing 23,800 as a crucial support level. This technical perspective suggests that any dip towards the support zone should be viewed as a strategic buying opportunity. The recent challenge around the 100-day exponential moving average at approximately 24,200 remains crucial, and Shah’s optimism is bolstered by stabilizing crude oil prices, projected to stabilize between $68 and $69 per barrel, alongside a favorable commodity price landscape.
The Bank Nifty has been a notable outperformer, having surpassed the formidable 58,000 milestone, with a near-term target set at 59,300 and firm support at 57,500. Given that the banking sector accounts for a substantial 35% weighting in the Nifty 50 and has witnessed increasing Foreign Institutional Investor (FII) interest, its positive technical momentum serves as a tailwind for broader market patterns. Shah emphasizes that the Nifty’s overall health is also evidenced by a majority of its constituent stocks, especially within banking, capital goods, and automotive sectors, indicating potential upside of 5% to 10% from current levels, thus highlighting the breadth of market participation essential for a more sustainable rally.
Among specific stock recommendations, Mahindra & Mahindra (M&M) emerges as Shah’s top pick in the automotive segment. After a notable rally followed by a healthy retracement, M&M is positioned for a targeted recovery to ₹3,400, with risk management suggested via a stop loss at ₹2,900. In the capital goods sector, Larsen & Toubro (L&T) stands out, as it exhibits a bullish reversal pattern supported by improved geopolitical stability. A significant breakout above ₹4,250 positions L&T with a target of ₹4,500 and a stop loss set at ₹4,050. As investors navigate a condensed trading week with possible headline risks, Shah reinforces his view that while volatility may pose short-term challenges, the structural upward trajectory in the market remains intact.
Source: The Economic Times
(Expert Note: This report was prepared by the Wealthova team.)