Buy the Dip: Dharmesh Shah sees midcap, smallcap rally ahead

Time of India

24-06-2025

On the downside we will believe 24,400 to 24,700 will act as a strong support for the Nifty
ICICI Direct's Dharmesh Shah suggests a positive outlook for the Indian market, fueled by ceasefire news and falling crude oil prices. Nifty is expected to reach 25,700, with strong support between 24,400 and 24,700, indicating a buy-on-dip strategy. Shah recommends capital goods sector, particularly L&T, projecting a target of 3928 with a stop loss at 3570.
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"The biggest resistance for the Nifty for last five weeks was around 25,200, we have been consolidating in this 700 points. We expect market to see a target of around 25,700 for Nifty in the coming few weeks. So, market likely to see 25,700 as a target. On the downside we will believe 24,400 to 24,700 will act as a strong support for the Nifty," says Dharmesh Shah , ICICI Direct.Yes, definitely, the market started on very positive news after the news of ceasefire by US or Iran-Israel and also supported by the falling crude oil prices, that is something a big sentiment positive for the market.The biggest resistance for the Nifty for last five weeks was around 25,200, we have been consolidating in this 700 points. We expect market to see a target of around 25,700 for Nifty in the coming few weeks. So, market likely to see 25,700 as a target. On the downside we will believe 24,400 to 24,700 will act as a strong support for the Nifty.So, any dip in market should be looked as a buying opportunity. So, we remain to be constructive positive for the market and again, I would say that the market breadth which is again a good indicator for the market, looks like there is a long way to go for the market because if you look at the midcaps and the smallcaps, we expect the action should now see a catchup activity in midcaps and smallcaps . So, it is clearly a buy on dip market for target of 25,700 for the Nifty.Definitely, if you look at the current structure of the market, the way that things seem to be setting up like you have a whole inflation and the interest rate cuts, the biggest beneficiary to this is again a capex driven stocks.So, capital goods as a sector we remain to be constructive positive for and the gradual recovery is expected for capital goods because the sector itself has seen a good correction of around 35% to 40% from the top.Inside the capital goods we remain to be constructive positive for L&T. L&T again the stock has been witnessing a five months of falling trend line breakout supported by strong volumes and in the current corrective phase the stock seems to be finding a strong support at 20-day EMA, so keeping all things together looking at the weekly as well as the monthly chart, it looks like L&T should be looking for new high in the coming few days. So, yes, L&T for target of 3928, keeping a stop loss of 3570 we remain to be positive for L&T.