Stocks to buy or sell: Dharmesh Shah of ICICI Sec suggests buying PFC shares tomorrow – 11 August 2025

Stock market today: The domestic benchmark indices continued their downward trend for the sixth week in a row, primarily influenced by rising trade tensions between the US and India. The mood was subdued at the beginning of the week, but selling pressure grew stronger as the week went on. In the end, both the Nifty 50 and the Sensex dropped by almost one percent each, finishing at 24,363.30 and 79,857.79, respectively.

Dharmesh Shah of ICICI Securities predicts that the Nifty 50 is nearing an important support area between 24,000 and 23,800, which aligns with the 52-week EMA and the 50% retracement of the entire upward movement since the low of 21,743 in April, given the current oversold situation. Shah recommends one stock to buy this week. Here’s what he says about the overall market.

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Market Outlook by Dharmesh Shah, Vice President, ICICI Securities

The Indian equity benchmark closed on a negative note for the sixth consecutive week tracking tariff development, FII’s sell-off and depreciating rupee and settled the week at 24,363, down -0.82%. The Nifty Midcap and Small cap indices extended losses for the third week and underperformed the benchmark. Sectorally, Pharma and Realty witnessed sell-off while, PSU Bank, Metal and Auto relatively outperformed. The lack of follow through strength resulted into another bear candle over sixth week in a row, indicating corrective bias.

Going ahead, the tariff related development would dictate the further course of action. Key point to highlight is that, with past six weeks correction (5%) weekly stochastic has approached the lowest reading of 2.3, since 1995, indicating oversold conditions. Hence, any positive development on the tariff front would help index to resolve higher and witness technical pullback towards 24,800 marks in the coming weeks. Meanwhile, for a meaningful pullback to materialise, index need to form a higher high-low and decisively close above previous session’s high which has been missing over past twelve sessions. Failure to do so would result into extended correction wherein key support is placed around 24,000-23,800 levels.

On the structural front, market breadth is trading near lower band where the % of stocks above 50 days EMA is approaching key bull market support zone of 25 that offers incremental buying opportunity. We believe, the earning-based volatility is likely to subside as we enter the fag end of the earning season while focus will now completely shift to tariff development.

In the technical parlance, 52 weeks EMA (Equivalent to 200 days Moving Average) has the utmost importance where long term accumulation take place. The index is approaching key support zone of 24,000-23,800 being 52 weeks EMA and 50% retracement of entire up move off April low 21,743 amid oversold condition, indicating possibility of technical pullback cannot be ruled out. Hence, traders should refrain from creating aggressive short position in the upcoming truncated week. Instead focus should be on accumulating quality stocks backed by strong earnings in a staggered manner.

On the sectoral front, focus should be on domestic themes thereby BFSI, Consumption, Capital Goods & infra would be in focus, while realty index would continue to underperform.

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Key monitorable to watch out for in current volatile scenario

a) Development of Bilateral trade deal negotiations.

b) US and Domestic inflation print

c) US Dollar index retreated from past two years breakdown area of 100, indicating corrective bias while crude oil pared last week’s gains and resumed downward momentum.

Stocks To Buy This Week – Dharmesh Shah

Dharmesh Shah of ICICI Securities recommends buying Power Finance Corporation Ltd (PFC) shares this week.

Buy PFC shares in the range of ₹405-415. He has PFC share price target of ₹478 with a stop loss of ₹388.

Also Read | Stocks to buy under ₹100: Mehul Kothari of Anand Rathi recommends three shares

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 08/08/2025 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.

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