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Dharmesh Shah of ICICI Direct shared his market reading, emphasizing the positive tone set by Q2 results. “Yes, definitely, the way the Q2 numbers have been till now, nothing so negative. Nothing so shocking which we used to see in Q1. So, it looks like things look to be much better for market. If you look from the Nifty perspective yes, definitely 25,200, 25,300 which was acting as a major resistance and managed to surpass with good sentiment, with good market breath, it looks like market should be looking for target of around 25,800 which is again the 80% retracement of this entire fall. So yes, it is something a buy on dips market.”
He further added, “If you look the way the market behaviour in last few trading session, it has been volatile on the back of tariff concern, Q2 earnings, but market managed to close above 25,200, 25,300 levels. So, we believe it is a buy on dip market with strong support placed at 24,900. Thanks to banking, again I would say that the way the Bank Nifty has been performing in last few trading sessions, it is clearly showing the clear outperformance in terms of relative outperformance. So yes, Bank Nifty we expect challenge the 57,600 which was life-high and expecting Nifty to head towards 25,800 in the days to come. So, buy the dip should be the strategy with strong support placed at 24,900.”
On stock-specific opportunities, Shah highlighted the banking sector as a key outperformer. “Yes, definitely, banking as I said has been the clear outperformer and we believe the PSU banks are the ones which should lead the rally where State Bank of India remains to be our top pick. Again, for State Bank of India a long consolidation of one-and-a-half-year breakout has been witnessing. We managed to close above the major resistance of around 875. We believe the way the technical setup seems to be forming for State Bank of India, it could be the stock of the year going forward. So SBI we believe the way the things are panning out looks for target of around 950, keeping a stop loss of 845.”
Shah also emphasized opportunities in the NBFC space, particularly Shriram Finance. “Again NBFC space also looks positive like Shriram Finance, we remain to be constructive positive for and the way the CV cycle seems to be turning positive, it looks the Shriram Finance should be the biggest beneficiaries. So yes, Shriram again a flat breakout with sustaining above the previous breakout levels, looks for target of around 730, keeping a stop loss of around 648.”
With Nifty holding above key support levels and Bank Nifty leading the charge, market participants appear positioned for cautious optimism, favoring a buy-on-dip approach for the remainder of the expiry week.
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