Stocks to buy or sell: Dharmesh Shah of ICICI Sec suggests buying PFC shares tomorrow
The Sensex fell by 721.08 points, or 0.88%, closing at a level not seen in over a month at 81,463.09. During the day, it briefly dipped by 786.48 points, or 0.95%, hitting a low of 81,397.69.
The Nifty 50 also fell, decreasing by 225.10 points, or 0.90%, to reach a monthly low of 24,837. Analysts noted that a lackluster performance in Asian and European markets further impacted investor sentiment.
According to market analysts, Indian markets are expected to be affected by the ongoing Q1 FY26 earnings season in the coming week, as many prominent companies are set to announce their results. Investors will closely monitor management discussions for insights regarding margin forecasts, sector developments, and more.
Dharmesh Shah from ICICI Securities anticipates that the Nifty 50 will continue to be in a corrective phase as long as it continues to create lower highs and lows, with significant support established at 24,500, a level that has been successfully defended on several occasions even in the face of geopolitical concerns observed during May and June.
Equity benchmarks pared intra-week gains that resulted into extended losses over fourth week in a row amid absence of US-India bilateral tariff agreement. Nifty 50 underperformed the global peers and settled the week at 24837, down 0.5%. Broader market seen profit booking as Nifty midcap and small cap lost 2% and 4%, respectively. IT, Realty, FMCG weighed on market sentiment while Financials, pharma relatively outperformed. The weekly price action formed a small bear candle with upper wick carrying lower high-low, indicating extended correction.
Contrary to our expectation index extended losses and closed below 50 days EMA which has been majorly held since April coupled with 2 months rising trend line breakdown. Going ahead, we expect bias to remain corrective as long as Nifty 50 maintains lower high-low formation wherein strong support is placed at 24,500 which has been held on multiple occasions despite geopolitical worries seen during May and June.
Amidst ongoing corrective phase only silver lining is that the Bank nifty is showing relative outperformance and trading within 2% of its All-Time range. Further, any positive development on earnings as well as on bilateral trade agreement would dictate the further course of action which will eventually help to retest the immediate resistance of 25,300 in coming weeks.
India VIX has corrected over sixth consecutive week and now bounced after approaching cyclical lows of 10, indicating participants anxiety at lowest level amid absence of key trigger. However, in the coming weeks, we expect rise in volatility tracking U.S. Fed policy coupled with monthly expiry and domestic IIP print.
Structurally, over past 20 sessions index has retraced 61.80% of preceding 11 sessions 5% up move. The slower pace of retracement, highlights robust price structure. Hence, focus should be on accumulating quality stocks backed by strong earnings.
a. US Fed Policy Outcome.
b. Development on US-India bilateral trade deal.
c. Weakness in US Dollar index and Crude oil prices.
d. India VIX is bouncing from extreme oversold territory.
On the broader market front, breach of past three weeks low on Midcap and small cap indices indicates corrective bias wherein possibility of mean revision towards its short-term averages cannot be ruled out. In addition to that, the market breadth has seen deterioration as % of stocks above 50 days SMA have declined to 44% from last week's reading of 68%.
Dharmesh Shah of ICICI Securities recommends buying Power Finance Corporation Ltd (PFC) shares this week.
Buy PFC shares in the range of ₹ 415-425. He has PFC share price target of ₹ 478 with a stop loss of ₹ 388.
Disclaimer: The Research Analyst or his relatives or I-Sec do not have actual/beneficial ownership of 1% or more securities of the subject company, at the end of 25/07/2025 or have no other financial interest and do not have any material conflict of interest.
The views and recommendations provided in this analysis are those of individual analysts or broking companies, not Mint. We strongly advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and individual circumstances may vary.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
India.com
12 minutes ago
- India.com
Mumbai To Ahmedabad In 2 Hours: Indias First Bullet Train To Start Soon; Check Expected Speed
India's First Bullet Train: Railway Minister Ashwini Vaishnaw on Sunday announced that India's first bullet train between Mumbai and Ahmedabad will begin operations very soon, reducing travel time between the two cities to just 2 hours and 7 minutes. He was speaking to reporters at the Bhavnagar terminus in Gujarat after virtually flagging off three trains, namely the Ayodhya Express, Rewa Pune Express, and Jabalpur Raipur Express. He further stated that the bullet train project is progressing rapidly. 508-Kilometre Rail Corridor The 508-kilometre high-speed rail corridor will connect Mumbai's Bandra Kurla Complex (BKC) with key cities in Gujarat, including Vapi, Surat, Vadodara, and Ahmedabad. The trains are expected to run at speeds of up to 320 km/h. Vaishnaw also outlined several upcoming railway projects in Gujarat, including a new Porbandar–Rajkot train, a Rs 135-crore coach maintenance facility at Ranavav station, a railway flyover in Porbandar, two Gati Shakti cargo terminals, and a container terminal at a developing port in Bhavnagar. He highlighted the nation's progress, saying that during the last 11 years, 34,000 km of new railway tracks have been installed under the PM Narendra Modi administration, averaging almost 12 km per day. He described the 1,300 railway stations undergoing renovation as an unprecedented endeavour in the history of Indian Railways. PM Modi's Vision Ashwini Vaishnaw pointed out that India is implementing this change while maintaining train operations and keeping stations operational, which reflects the scope of PM Modi's vision, in contrast to developed nations, where station redevelopment entails completely stopping services. Adding further, he cited the introduction of contemporary trains such as the Vande Bharat Express, the Amrit Bharat Express, and the Namo Bharat Express. Eight Amrit Bharat trains with high-class amenities and reasonably priced tickets have been introduced thus far. According to the minister, passengers have responded favorably to these new trains, which were constructed using cutting-edge technology. With the help of double-engine governments in Madhya Pradesh and Chhattisgarh, significant railway projects are also progressing in those states, in addition to Gujarat, the minister highlighted. (With IANS Inputs)
Mint
12 minutes ago
- Mint
Wall Street Banks Lose Ground in Europe as Tariffs Spook Clients
(Bloomberg) -- As US President Donald Trump has ratcheted up his rhetoric against trading partners in Europe — corporates across the continent are taking notice. As a result, some companies have begun to diversify their banking relationships away from the giants of Wall Street, according to data compiled by Bloomberg. That's been a boon for Europe's leading banks, which have been actively vying to win the extra business. 'Some players are saying that it's better to go to European or French investment banks for advice on financing or mergers and acquisitions,' said Arnaud Petit, managing director of Edmond de Rothschild's corporate finance business. Deutsche Bank AG Chief Executive Officer Christian Sewing sees similar in potential clients' requests for proposals: 'It is happening every day with client wins and RFPs and new business that we put on.' So far this year, roughly half of the euro bond deals from non-US companies did not involve any of the five biggest US banks, according to data compiled by Bloomberg. That's up five percentage points from a year earlier. For sterling bonds the gap has widened even further — Wall Street banks were shut out of just 47% of deals throughout all of last year. So far this year, though, they've been excluded from 64% of them. The emergence of the ability of a few European banks 'to be able to offer competitive services and advice to clients' has created a desire among clients to switch, according to UBS Group AG Chief Executive Sergio Ermotti. 'We believe we are well placed to continue to benefit from that diversification.' Even before Trump's trade war kicked off in earnest, the biggest of the US banks warned that it was starting to see an impact. By April, JPMorgan Chase & Co. had already lost 'a couple' of bond deals tied to the tariff uncertainty, with companies opting for local banks instead, Chief Executive Officer Jamie Dimon said in an interview with Fox Business at the time. He warned that the tumult was 'causing cumulative damage including huge anger at the United States.' The latest example of a win for non-US banks came this week, when Zurich-based insurer Chubb Ltd. issued an offshore yuan-bond. It opted for Standard Chartered Plc to help take on the deal. The bank was told: 'We want to bank with the regional champions, rather than just with global banks in general,' Standard Chartered Chief Financial Officer Diego de Giorgi said. 'Because we think that you guys bring specific skills in a world that is fragmenting.' Chubb is not an exception. The effect is most pronounced in Asia, where economies are expected to be hard hit by the changing trade regimes and the re-routing of supply chains, said Ruchirangad Agarwal, head of corporate banking for Asia and the Middle East at the research firm Coalition Greenwich. 'The willingness of companies in Asia to change their transaction bank is currently at a high: a third of them plan to issue a new RFP within the next 12 months,' Agarwal said. Already, US lenders' market share in financing trade for Chinese companies has dropped in recent years - from 12% in 2017 to about 7% share now, he added. 'We expect to see heightened uncertainty and customer churn at US banks as large corporates take an active risk management stance on FX, interest rates, counterparty risk, geopolitical tensions and supply chain disruptions,' said Martin Smith, head of markets analysis at East & Partners. BNP Paribas SA, meanwhile, has gained more share than any other player in Asia, Smith said. 'There are clearly strategic opportunities in the tectonic shifts that the world has been seeing in recent months' Societe Generale SA CEO's Slawomir Krupa said of companies looking to shift toward European banking partners. 'The logic behind this form of risk diversification has become more apparent for companies.' --With assistance from Harry Wilson, Claudia Cohen and Noele Illien. More stories like this are available on
Mint
12 minutes ago
- Mint
1.8 crore jobs at risk? THESE three sectors likely to get impacted due to AI, new-age technologies, says report
New-age technologies like Artificial Intelligence (AI) are set to implement a 'seismic' shift in the industries affecting the jobs of more than 1.8 crore people over three key sectors by the year 2030, reported the news agency PTI. Manufacturing, Retail, and Education are the three sectors poised to be impacted by the effects of implementing AI into operations, according to the agency report. Out of the three sectors, the Manufacturing sector is expected to witness the worst hit from the AI transition, with 80 lakh workers set to be affected, followed by the Retail sector with 76 lakh jobs, and the Education sector with 25 lakh jobs affected in the next five years, reported the news agency, citing Servicenow data. High-automation roles like Change managers and Payroll clerk job roles are expected to be redefined by the AI agents, which will take over the routine coordination. However, "high-augmentation" job roles like the Implementation consultants and System admins are working and partnering with AI instead of competing with it. India's largest IT company, Tata Consultancy Services (TCS) in the end of July 2025, announced that the company will be laying off almost 2% of its workforce, or more than 12,000 employees in the financial year 2025-26. The IT firm will focus the job cuts on the middle and senior management employees as part of its broader strategy to become 'future-ready' and focus on technological investments, AI developments, market expansion, etc. Mint reported earlier that TCS's total workforce stands at 6,13,069 people as of the April-June quarter of the financial year 2025-26. The news agency cited Sumeet Mathur, the managing director for Servicenow India Technology and Business Centre, who said that artificial intelligence is expected to create 30 lakh jobs in new technology by 2030. Artificial intelligence is also reshaping the workforce, and will "redefine" over 1.35 crore roles, said the executive, cited in the agency report. "India has a generational opportunity to lead globally by developing AI-ready talent, redesigning workflows, and reorienting business models around continuous innovation," said Sumeet Mathur. After conducting a more than 500-industry-leader survey on AI adoption, the company noted that 13.5% of tech budgets of the IT company are already pledged towards AI adoption, and one-fourth of the firms in India are already in their transformation phase. With data security as one of their top concerns, the Indian companies are highlighting the urgent need for strategic foresight and structured, cross-functional reskilling pathways in the market.
