NSE Nifty 50 index may hit a 18,600 target by the December 2022-end on the back of outperformance of BFSI, IT, Auto, Capital goods and PSU stocks, ICICI Direct said in a report. The brokerage firm advised to use dips for buying as strong support is seen at 16800. In the afternoon deals, Nifty 50 was ruling at 17,586.15, up 0.4 per cent. It also noted that Nifty’s breakout above the major trend line signals the end of the corrective phase. It said Nifty is set to touch 18600, as the current rally of 18% is the strongest since October 2021, leading breakout from eight months falling trend line that displays rejuvenation of upward momentum.
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ICICI Direct added that the strength in domestic equities is well supported by positive correlation with US indices, which have signalled end of corrective phase with breakout above eight month falling channel. Moreover, Brent crude has given a breakdown below two year trend line along with lower high-low on monthly charts signifying that upward momentum has been lost and upsides are expected to be short lived. “The broader market indices are expected to catch up with benchmarks as Nifty Midcap index has already given a breakout from eight month falling channel,” it said. Earlier in July, the research and brokerage firm upgraded its Nifty target of 16600 to 17500 for the coming months, maintaining the strong support at 16000.
Top sectors, stocks to buy
BFSI: SBI, Kotak Mahindra Bank, HDFC Bank, Bajaj Finance, CUB, Canfin Home Finance, HDFC AMC
PSU: Bank of Baroda, Coal India, NTPC, BDL, BEL, Concor, Mazagaon Dock
Capital goods: L&T, Siemens, Thermax, Greaves Cotton, Elgi Equipments, Grindwell Norton, Action Constructions
Telecom & IT: Reliance Industries, Bharti Airtel, TCS, KPIT Technology, Cyient, Happiest Minds
Consumption & Retail: Asain Paints, Tata Consumer, Titan Company, Dabur India, Jyothy Labs, Radico Khaitan, Havells, Astral
Auto: Maruti Suzuki, Tata Motors, Eicher Motors, Escorts, Mahindra CIE, Pricol, Apollo Tyres
Infra and Realty: Adani Ports, DLF, Brigade Enterprises, Phoenix Mills, JK Cement
Pharma & Chemicals: Cipla, Sun Pharma, Laurus Labs, Hikal, Dr Lal Pathlabs, Fortis Healthcare
Metal: Tata Steel, JSW Steel, Hindalco, Jindal Stainless
Others: ABFRL, Indian Hotel, Zee Entertainment, Dixon Technology, GE Shipping, Tejas Networks, Tata Communications, TCI Express, Navin Fluorine, Bajaj Electricals, Prestige Estates
