The Indian benchmark equity index Nifty is undergoing a healthy consolidation phase. The index has corrected nearly 3% from its all-time high level of 19,991.85 hit in July this year.
The consolidation in the Nifty comes after a sharp rally of nearly 19% from March lows.
ICICI Direct has a target for Nifty of 20,700 by Diwali this year which falls during mid-November. It also reiterated the Nifty target of 21,400 by March 2024.
According to a research report by ICICI Direct, Nifty is following a similar trend as was seen CY2014 and CY2017, wherein after large consolidation breakouts, intermediate corrections to the tune of 5-7% always presented buying opportunity to ride structural bull run with key support at 18,600.
“We reiterate the Nifty target of 21,400 by March 2024 with an intermediate target of 20,700 by Diwali 2023,” ICICI Direct report said.
Also Read: PM Modi says invest in PSUs; Here’s how HAL to LIC have performed, experts explain
Meanwhile, it expects broad-based rally to be led by sectors such as BFSI, IT and Telecom, while Metal, Infra, Power and PSU Banks are expected to generate alpha.
The technical charts for Bank Nifty indicate the structural uptrend and leadership is intact. ICICI Direct expect Nifty Bank to gradually head towards 48,600 around and suggests using ‘buy on dips’ strategy.
A strong support for Bank Nifty is seen at 42,000 levels.
ICICI Direct’s top picks in the BFSI sector includes HDFC Bank, SBI, IndusInd Bank, Federal Bank, Indian Bank, L&T Finance and LIC Housing Finance.
Among PSU stocks, ICICI Direct’s top picks include Hindustan Aeronautics, NTPC, Engineers India, Hindustan Copper, PFC, IRCON International and BEML.
Check out below the top picks of ICICI Direct in other sectors:
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.
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Nifty may hit 20,700 by Diwali 2023, says ICICI Direct; HDFC Bank, Tata Motors, Reliance among top picks | Mint – Mint
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