Nifty 50 may well be once again headed towards its lifetime higher of 15,430 in the coming months, possessing held a essential help level for the duration of the last couple of weeks’ correction, ICICI Direct stated in a current note. The benchmark NSE index was in the correction for the last couple of weeks but managed to hold above 14,200 for the duration of the period. The essential help levels had been respected regardless of the worry of revised lockdowns and the second wave of coronavirus. Earlier, Nifty made all-time higher in the middle of February this year for the duration of the post-spending budget rally and because then has been moving variety-bound with a unfavorable bias.
Buy on dips towards 14,200
“Despite anxiety around surging Covid-19 cases across India, the index managed to hold the key support threshold of 14200 on multiple occasions, highlighting elevated buying demand emerged after approaching maturity of price and time-wise correction,” ICICI Direct stated in a note. Since March last year, Nifty has not corrected more than an typical of 9% when time sensible not extended correction for more than 2-3 consecutive weeks. Nifty holding above 14,200 signals getting interest, as the index has maintained the rhythm above this level.
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The anticipated up-move in Nifty 50 would be accompanied by stock-certain action amid quarterly benefits. ICICI Direct stated that investors need to use dips towards 14,200 as a getting chance as the one hundred days EMA is placed at the stated levels.
Broader markets may well outperform
Among broader markets, the Nifty midcap one hundred has also shown strength and have maintained a pattern of not correcting for more than 9% more than two or 3 consecutive weeks. In the coming weeks, ICICI Direct expects the index to outperform benchmarks. In the smallcap space, the Smallcap one hundred has respected the 50 days EMA, because June 2020. “Nifty midcap index has taken a breather after clocking a fresh all-time high, whereas Nifty small-cap index is still ~11% away from its all-time high. Hence, catch up activity can be seen in Small-caps,” ICICI Direct stated.
Bank stocks desirable to invest in
Banking stocks are seen as bargain invest in along with FMCG stocks with a favourable danger-reward setup. Metal stocks are in an uptrend and could continue to execute more than the next couple of months. Similarly, healthcare stocks are also outperforming and are anticipated to continue moving greater. ICICI Direct stated that IT stocks have consolidated and are probably to execute at portion with the industry.