Stock market news: Indian stock indices remained positive for the fourth consecutive session on Friday, bolstered by encouraging global signals, relative calm in the Israel-Iran conflict, and a potential extension of the tariff deadline originally set for July 9 by the US government.
A spokesperson from the White House suggested on Thursday that the deadline for reciprocal tariffs might be postponed, although he noted that it would ultimately be up to President Donald Trump to make that decision. President Trump, for his part, indicated that a “great deal” was forthcoming with India, which has heightened investor optimism. Currently, India’s negotiation team is in the US working on a trade agreement.
Strong domestic fundamentals in India, a proactive Reserve Bank of India (RBI), and favorable monsoon conditions are all contributing to the support of the financial markets. With US markets reaching record highs and the US dollar declining, emerging markets, including India, are poised to gain.
On Friday, the Sensex closed at 84,058 points, rising by 303 points, while the Nifty 50 finished at 25,637 points, climbing up by 89 points.
Dharmesh Shah, Vice President at ICICI Securities, said Nifty 50 looks poised for a breakout from six weeks consolidation (25,200-24,500) supported by across sector participation.
Shah has recommended two stock to buy for short-term. Here’s what he expects from Indian stock market next week, along with his stock recommendation.
Market Outlook by Dharmesh Shah, Vice President, ICICI Securities
Nifty 50 reclaimed 25,500 mark after eight months, as easing of geopolitical worries bolstered market sentiment globally. Consequently, S&P 500 has approached near its All-Time High levels. Nifty 50 performed in tandem with global peers gaining 2% for the week, at 25,638. Small cap zoomed 4% wherein traction seen in Metal and Capital market, BFSI sectors. The weekly price action formed a sizable bull candle carrying higher high-low, indicating acceleration of upward momentum.
Breakout from six weeks consolidation (25,200-24,500) supported by across sector participation makes us confident to believe that index is poised to challenge it’s All time high in coming quarter.
Meanwhile, from short term perspective immediate hurdle is placed at 25,800. Volatility along the way if any should be used as a buying opportunity as we expect Nifty 50 to hold key support of 24,900. From seasonality perspective, July has been the favourable month for Nifty 50 since 1991, 71% of the time returns have been positive with an average of 2.5%.
Structurally, despite geopolitical worries index maintained its higher high-low formation wherein Nifty 50 has merely corrected 3% and now witnessing acceleration of upward momentum. Past four decades history suggest that knee-jerk reactions during geopolitical escalation offers good investment opportunity for medium term perspective rewarding with double digit returns in subsequent three months. We expect, index to maintain the same rhythm.
On the broader market front, the Nifty midcap and small cap indices have resumed uptrend after two weeks breather and now just 3-4% away from their life time highs. Meanwhile, northward inching ratio of Nifty 500 / Nifty 100 makes us believe that broader market would continue with its outperformance. Further, current rally is backed by the sturdy market breadth as currently 80% stocks of Nifty 500 universe are trading above their 50 days SMA while 62% of stocks are sustaining above their 200 days SMA, highlighting inherent strength.
Our positive bias is further validated by following observations:
1. Outperformance of Bank Nifty continued as it inched upward and clocked fresh All Time High
2. Easing of geopolitical tension has resulted into decline in crude oil prices
3. US Dollar index is sustaining below past two months low of $98 which augurs well for FII’s inflow in emerging markets
4. Bilateral Trade Agreement between India and US
Stocks To Buy This Week – Dharmesh Shah
Dharmesh Shah of ICICI Securities recommends buying Power Finance Corporation Ltd (PFC), and National Aluminium Company Ltd (Nalco) 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.
Buy Nalco shares in the range of ₹186-192. He has Nalco share price target of ₹216 with a stop loss of ₹174.
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 27/06/2025 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.
