ICICI Direct's Head Technical Dharmesh Shah expects the Nifty to target 25,500 after a breakout above the 24,600 level, citing improving technical indicators, easing crude oil prices, and rupee strength. As per ET Now, Shah noted that the equity benchmark staged a strong recovery, supported by easing crude oil prices and a strengthening rupee, ending the week at 24,383 with a 2.6% gain. The technical analyst highlighted that the Nifty reclaimed its 200-day EMA (24,370) after 5 months, marking a significant structural improvement. Shah emphasized that the breakout from the past three months consolidation of 24,600-23,100 looks imminent, with any decline from current levels serving as a buying opportunity.
The Indian stock market continues its strong upward trajectory, with the Nifty 50 advancing nearly 2.6% in the past week and showing significant momentum toward higher levels. According to latest reports from ET Now, the index has the potential to move higher toward the 24,500-24,600 levels and then the 25,000 mark. This bullish outlook is supported by positive opening indicators, with GIFT Nifty up 0.8% or 183 points at 24,631 as of 8:30 am, indicating a higher opening for today's session. Experts suggest that the Nifty rally has enough steam left to move closer to 25,500, with analysts recommending maintaining a positive view on the index for traders.
SEBI-registered research analyst Kunal Bothra has recommended several stocks for potential gains during today's trading session. As reported by ET Now, the analyst has set a target price of ₹270 for Jio Financial Services with a stop-loss at ₹240. Additionally, Bothra recommends Siemens with a target price of ₹4,000 and a stop-loss at ₹3,630, and Ather Energy with a target price of ₹1,620 and a stop-loss at ₹1,525. Recent analyst recommendations also include Jio Financial Services and Hero MotoCorp as recommended buys with specific price targets, while Ashok Leyland and Havells India present buying opportunities based on technical breakouts. Bharti Airtel and Sona BLW Precision Forgings show strong upward momentum, adding to the positive sentiment across key sectors.
According to ET Now, Shah's constructive stance is based on several technical observations. The Nifty closed above its previous months high after 7 months, highlighting structural improvement in larger degree time-frames. After a 1,500 points consolidation phase following an 11% surge in April, the index has established a durable higher base around the 3-months upward sloping trendline. The optimism around Q1 earnings is shifting from large caps to midcaps, with the Midcap Index regaining momentum following a 5-week breather. Shah noted that July FII net selling dropped to ₹6,000 crore, which is drastically low compared to the past six months average of ₹57,000 crore, indicating reduced foreign selling pressure.
ICICI Direct recommends Hyundai Motor as a buy in the range of ₹2,120-2,185 for a target of ₹2,320 with a stop loss of ₹2,049. Additionally, the brokerage recommends PNB as a buy in the range of ₹109-112 for a target of ₹120 with a stop loss of ₹106. These recommendations complement Bothra's earlier picks of Jio Financial Services, Siemens, and Ather Energy. Shah emphasized that the key factors in focus are RBI Monetary Policy, falling crude oil prices, and the sustenance of the US Dollar index below $100, which would provide a cushion to Indian equities.
