Stocks to buy for long term: Dharmesh Shah of ICICI Securities picks seven shares for 2026, sees Nifty 50 at 50K by 2030

Stocks to buy for long term: In the wake of the delay in the India-US trade deal, the Indian National Rupee (INR) has lost nearly 6% in YTD against the US Dollar (USD). Such a fall in the Indian Rupee has failed to win back the positive sentiments of the FIIs, who have remained net sellers since July 2025. Among the key benchmark indices of the Indian stock market, the Nifty 50 index has risen close to 9%, the BSE Sensex has surged nearly 8%, whereas the Bank Nifty index has increased by over 15.50% in YTD. As both the US and the Indian governments are dropping highly positive hints to seal the trade deal soon, which, once completed, is expected to ignite a fresh bull trend on Dalal Street.

Stock market outlook

Dharmesh Shah, Vice President at ICICI Securities, believes the Indian stock market is likely to continue delivering stellar returns in the long term. The technical analyst believes that one should look at stocks that appear strong on the technical chart. Following the historical chart, Dharmesh Shah has a conviction that the Nifty 50 index will soon catch momentum, as it is currently around the 52-DEMA range, which has historically been a good indicator for buying. The ICICI Securities expert noted that the Bank Nifty index is nearly 5% below its 52-week moving average (DEMA), a level that has historically triggered value buying in banking stocks.

Nifty 50 target in 2026, 2023

Speaking on the outlook of the Nifty 50 index, Dharmesh Shah of ICICI Securities, said, "Based on the monthly chart pattern, the Nifty 50 index is set to head towards 30,000 in CY26 based on following observations — 1] Implicated target of Cup & Handle pattern, historically such breakouts garnered 40% in subsequent 12-18 months; 2] Upper band of rising channel: Price action since Nov 2021 is confined within rising channel; and 3] Rally post bull market corrections of 15%-20%: Historically that has garnered 40% gains over next 12-18 months," adding, "The long-term bullish thesis for the Nifty 50 index is intact the key index may touch 50,000 by 2030."

"On the weekly chart, historically, a rebound from 52-DEMA has always been a good omen for value buying. Buying near the 52-week DEMA (2,4700) offers a favourable risk-reward. Since 2008, the index witnessed an average return of 30% in the next 12 months with an average drawdown below the 52-week DEMA of 7%. As expected, the Nifty 50 index rebounded after a 17% correction, which augurs well for the move towards 28,600."

Bank Nifty outlook for 2026

Expecting the Bank Nifty index to touch 67,000 levels in 2026, Dharmesh Shah said, "Bank Nifty target of 67000 is based on the following observations — 1] Since 2022, 3-5% dips below the 52-week DEMA have triggered strong buying, leading to a median ~28% gain in the next 7-10 months; 2] Expect Bank Nifty to accelerate towards upper band of channel placed around 67000 by CY26; and 3] Breakout from ratio chart signifies outperformance of banking stocks."

Stocks to buy for the long term

To maximise this rally in the key benchmark indices, Dharmesh Shah of ICICI Securities recommended buying these seven stocks for the long term: Bajaj Finserv, Indian Oil Corporation Ltd (IOCL), LTIMindtree, Pidilite Industries, SRF, Can Fin Homes, and Jamna Auto Industries.

1] Bajaj Finserv: Buy in the ₹1960 to ₹2090 range, Target ₹2400, Support ₹1870;

2] IOCL: Buy in the ₹155 to ₹165 range, Target ₹190, Support ₹143;

3] LTIMindtree: Buy in the ₹5950 to ₹6380 range, Target ₹7370, Support ₹5500;

4] Pidilite Industries: Buy in ₹1400 to ₹1780, Target ₹1720, Support ₹1310;

5] SRF: Buy in the ₹2820 to ₹2970 range, Target ₹3480, Support ₹2548;

6] Can Fin Homes: Buy in ₹875 to ₹930, Target ₹1110, Support ₹790; and

7] Jamna Auto Industries: Buy in the ₹119 to ₹128 range, Target ₹152, Support ₹103.

Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.