NSE Nifty 50 is anticipated to challenge its lifetime higher of 15,431 points and soar to as higher as 16,400 by September, brokerage ICICI Direct mentioned in a note, reiterating the positive stance on the domestic share industry benchmark. The brokerage firm believes that the formation of greater peak and trough coupled with multi-sector participation might lead Nifty towards revised target of 16,400 more than the next quarter, led by BFSI, consumption, automobiles and infrastructure stocks.
On technical charts, Nifty has formed a powerful assistance base in the variety of 14,400-14,600. The formation of greater peak and trough on the bigger degree chart recommended elevated shopping for demand that has made the brokerage firm confident of revising the assistance base at 14,600. “We expect the Nifty to hold 14600 as it is a 61.8 per cent retracement of current up move (15,251-14,151), 20 weeks EMA is placed at 14,500, and past three week’s low at 14,592,” it mentioned.
ICICI Direct does not count on the index to breach the important assistance threshold of 14600, and has advised investors to capitalise dips to accumulate excellent massive-cap and midcap stocks. With a decline in every day COVID-19 circumstances in India, Nifty 50 index is just one hundred points away from its record higher of 15,431.
As for the Bank Nifty index, the weekly bar chart signals resumption of main uptrend. Analysts count on it to progressively head towards 38,600 levels in the medium term. In line with its view, the Bank Nifty index maintained the rhythm of not correcting more than 20 per cent as witnessed due to the fact March 2020. Recently, it rebounded soon after correcting 19 per cent from its all-time higher of 37,708, which gives favourable danger-reward set up for the next leg of key up move in coming months.
Key figures in a nutshell
Nifty
– Revised Target: 16,400 by September 2021
– All-time higher: 15,431
– Nifty existing level: 15,301 (close of Wednesday, 26 May 2021)
– Strong assistance: 14,600
Bank Nifty
– Target: 38,600
– All-time higher: 37,708
– Last correction from all-time higher: 19%
Sectors and stocks in focus
Pharma and Chemicals: The Healthcare index extended its uptrend in May led by powerful cost structure. Technically, Divis Laboratories, Cipla, Caplin Point Laboratories and Solara Active Pharma Sciences might outperform. While Abbott India, Indoco Remedies and Dishman Carbogen provide favourable danger-reward setup.
Consumption: The brokerage firm highlighted that stocks such as Asian Paints, Astral Poly, Nilkamal, Kajaria Ceramics are set to outperform when Bata India, Titan Company, Trent, Kansai Nerolac Paints, Godrej Consumer Products provide a favourable danger reward setup.
IT: The IT index witnessed a breather soon after a rally in May. Within the sector, ICICI direct Research sees Wipro, Persistent Systems, Cyient, Birlasoft to outperform when Tata Consultancy Services (TCS), Infosys, Teamlease stocks provide a favourable danger reward setup.
Capital goods: Capital goods index snapped a two-month breather and made a sharp rebound soon after testing its 2018-19 peaks which has now turned as assistance. Stocks such as SKF India, KennaMetal India, Orient Refractories and Siemens stocks are set to outperform when L&T, ACE, NRB Bearings, Ador Welding shares provide a favourable danger reward setup.
Metal: The brokerage firm expects metal sector outperformance to taper down when maintaining the all round positive outlook intact. “We expect JSW Steel, Tata Metaliks, Graphite India and Jindal Stainless to outperform while Tata Steel, SAIL, Kalyani Steel provide favourable risk reward setup,” it mentioned.
Auto: ICICI direct Research expects industrial car, tractor space to extend outperformance when 2-wheeler space gives favourable danger-reward setup. Technically Bajaj-Auto, Tata Motors, Mahindra & Mahindra, Balkrishna Industries and Philips Carbon might outperform when Ahok Leyland, ESCORTS, Asahi India, Pricol stocks present a favourable danger-reward setup.
Realty and Infra: The Infra space has undergone decent correction in April and May 2021. The brokerage firm sees outperformance in stocks such as Ambuja Cements, Oberoi Realty, HG Infra. “While PNC Infratech, Sanghvi Movers, India Cements and Mahindra Logistics provide a favourable risk reward setup,” it added.
(The stock suggestions in this story are by the respective study and brokerage firm. TheSpuzz Online does not bear any duty for their investment guidance. Please seek the advice of your investment advisor just before investing.)