Purchase Indian Hotel and PFC Stocks: Dharmesh Shah’s August 18, 2025 Stock Selections Overview
After a six-week losing streak, the Indian stock market ended the week with a positive finish due to the holidays. Record inflows into mutual funds and the lowest inflation reading in eight years helped benchmarks the Nifty 50 and Sensex close higher. In light of this, Dharmesh Shah, ICICI Securities’ Vice President and Head of Technical Research, has advised purchasing shares of Power Finance Corporation (PFC) and Indian Hotels Company Ltd (IHCL) for the week starting August 18, 2025. Strong sectoral tailwinds, favourable technical setups, and alluring risk-reward ratios serve as the foundation for his calls.
Overview of the Market
Indian stocks ended the week up almost 1%, with the Sensex closing at 80,597.66 and the Nifty 50 at 24,631.30. After weeks of selling pressure driven by domestic uncertainties and global tariff tensions, the market recovered. Encouraging statistics such as stable mutual fund inflows and benign inflation helped restore investor sentiment.
Global events that relieved risk assets included the Trump-Putin summit in Alaska, which ended without new sanctions. Anticipation of tax reforms, especially the proposed two-slab GST structure, also increased domestic optimism.
Dharmesh Shah believes the Nifty 50 will test the psychological 25,000 level if the index stays above the 200-day EMA’s strong support zone of 24,200–24,000.Since India is still in a structural bull market, he counsels investors to see market corrections as long-term buying opportunities.
Dharmesh Shah’s stock recommendations:
1. Indian Hotels Company Ltd. (IHCL) Industry Prospects
India’s hospitality sector continues its strong recovery, driven by domestic travel, foreign arrivals, and government support. Hotel occupancy and room rates are expected to rise during the festive season, boosting IHCL, the owner of Taj Hotels, according to ICICI Securities.
From a Technical Perspective
Zone for Purchase: ₹755–771
Price Target: ₹824
Stop Loss: 729 naira
Recently, Indian Hotels emerged from a period of consolidation, indicating that its upward trend will continue. Bullish momentum is confirmed by technical indicators like the RSI and MACD, and institutional participation is suggested by larger trading volumes. Shah sees a lot of upside potential in the stock and considers it a low-risk entry point.
2. Sector Outlook for Power Finance Corporation (PFC)
PFC continues to be a major financier of generating and distribution projects as India ramps up its efforts to promote renewable energy and makes significant investments in power infrastructure. The government-owned NBFC is well-positioned for sectoral growth thanks to its consistent earnings, enhanced asset quality, and sound loan book.
Technical Perspective
Zone of Purchase: ₹410–420
Price target: ₹478
₹388 is the stop loss.
PFC has formed higher highs and higher lows during its continuous upward trend. The stock has resumed its upward trajectory following a successful retest of its breakout zone. Given the strong buying interest indicated by technical indicators, it is likely to outperform in the near future.
Why These Selections Are Unique
Dharmesh Shah’s suggestions combine technical validation with fundamental strength:
Sectoral Tailwinds: PFC is at the centre of India’s power financing plans, and the hospitality industry benefits from the demand for travel.
Technical Breakouts: Both stocks have moved decisively past resistance levels.
Clear Risk Management: They are advantageous risk-reward trades because of well-defined stop-loss levels.
Institutional Interest: High trading volumes imply that these counters are supported by smart money.
These stocks provide traders with opportunities for short-term momentum. They are viewed by investors as essentially sound companies with room for medium-term expansion.
Dharmesh Shah’s Forecast for the Market
Shah asserts that the overall market structure is favourable:
The weekly closing of the Nifty 50 at 24,500 shows that investors have already priced in most tariff-related worries.
Because of the 200-day EMA and Fibonacci retracement levels, the 24,200–24,000 zone serves as a solid support.
In the most recent week, PSU, pharmaceutical, and auto banks all demonstrated robust recoveries.
With more stocks rising above their 50-day moving averages, the market’s breadth has improved.
India is in a secular bull market, Shah notes, and brief corrections offer buying opportunities. He advises investors to gradually build up a portfolio of high-quality stocks during these times.
In conclusion
After six weeks of declines, Indian markets are starting to recover, making careful stock selection essential. For the week beginning August 18, 2025, Indian Hotels and PFC are the best investments, according to Dharmesh Shah of ICICI Securities. Moreover, Indian Hotels is set to ride the festive demand surge in the hospitality sector. Meanwhile, PFC profits from its pivotal role in funding India’s power and infrastructure expansion. Therefore, both stocks offer attractive opportunities for investors seeking growth.
These ICICI Securities picks provide precise entry, stop-loss, and target levels for short-term traders. Both stocks also offer solid investments in structurally growing sectors for long-term investors. As always, investors should track economic data, global cues, and practise disciplined risk management.
