Let’s start by looking at some of these big names in private banking. ICICI Bank Making new records. HDFC Banka power movement of around 2%. What do you think of this strength in Nifty Bank And do you expect it to continue next week?
Dharmesh Shah: We believe that this momentum should continue. And if you look at the Bank Nifty, I think it has made a significant rally and we expect this Bank Nifty to head towards 55,500 in the near term. So, yes, the Nifty is looking positive. Maybe the short-term resistance at 25,700, 25,800 cannot be ruled out, but buying on dips should be the strategy. Finally, we expect the Nifty to head towards 26,200 in the coming weeks. So, yes, buying on dips should be the strategy.Overall, how can one see what to do with the market? After four or five days of consolidation, we are again seeing a new record. Five days ago we had seen a move of 500 points. Today we are seeing a similar move of 300 points. What should be understood from this market and how should one prepare for this series in October?
Dharmesh Shah: So, if you look at the structure, yes, you need to be structurally positive. And within the structural bull market, corrections are an integral part of the equation, as we have witnessed in 2024, where 4% to 5% corrections in the Nifty cannot be ruled out. We believe, and I think in the future as well, that there will be times of corrections where 5% corrections cannot be ruled out.
But we think the broader market is showing signs that the strategy should be to buy when stocks fall, because, at the end of the day, if you look at any dip in which stocks have been bought, they have always been rewarded with positive returns.
Looking ahead, we remain positive. Any dip towards 25,100 or 25,200 should be considered a buying opportunity to target 26,200. Sector wise, yes, banking which was one of the worst performing sectors for a long time has been coming out of a long consolidation and we expect this breakout to eventually head towards 55,500. So, currently we are seeing, yes, private banks have outperformed, but eventually we expect that the PSU banks which have been trading in that 200-day EMA, the PSU banks index, we should see a gradual improvement here as well and we should see a recovery exercise in the PSU banks as well.
Last but not least, I would like to highlight that in September we published the report: buying on dips should be the strategy for September.
In the end, if we look at the historical data over the past 19 years, it has happened 15 times each time there has been a panic or profit-taking in September and the buying has been rewarded with a positive return of 7% in the following three months. So we remain positive on the market. In the end, yes, any dip should be considered a buying opportunity.
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