The New Year is likely to see the culmination of US FedInterest rate hikes and quantitative tightening cycle while inflationary pressures are also expected to cool down. However, global macro uncertainties and uncertainties regarding the trajectory of the Russo-Ukrainian war could lead to higher volatility.
Given the strong resilience of the Indian economy and the undisputed confidence of domestic investors in the Indian story, analysts see Nifty breaking through an all-time high. is 18,604.45 reached on 19 October 2021.
“The Indian market is performing better than the global markets so far and we anticipate a decent gain over the next one year with projected targets of 20,500-21,000 from the past one year. has stagnated and with a break above the 18,600 zone at least 12 %-15% upside is expected,” said local broker Prabhudas Lilladher.
Citing technical reasons, Kotak Securities believes the chances of hitting above 20,000 for Nifty and 66,000 for Sensex are higher than 15,000/51,000 again.
“In the near future, 16,500-16,000 / 55,000-54,000 will act as impenetrable support while 18,000-18,500 / 60,000-61,500 could be the main resistance zone for the bulls. If Nifty/Sensex breaks through the 18,500/61,500 resistance then it will head towards 19,500-20,000/64,500-66,000. On the other hand, a layoff of 16,000 / 54,000 could push the market towards 15,000 / 51,000 in the worst case scenario,” the broker said.
has Nifty’s one-year target at 19,425 (21x FY24 EPS) with industry trends for banking, capital goods/infrastructure, autos, avoiding sectors with global exposure more like IT, oil and gas and metals.
Brokers cite multi-year economic upswing amid stronger macros, minimal Covid impact, ‘China plus one’ strategy and other initiatives Government differences such as PLI plans and localization are the main factors driving the market development.
Securities, which has a Nifty target of 20,000 for Samvat 2079, expects the index to return around 10% by year-end 23.
“Nifty is currently trading at 18.4x earnings in fiscal year 24E, compared to an average of 20x. The sustainability of the earnings recovery will be a major headwind for the market for Samvat 2079,” it said.
For Axis Securities, the market’s fundamental tone remains upbeat with gains of 18,500-19,000 expected in the new year. The main bearish supports are located at 16500-16000, it said.
(Disclaimer: The recommendations, suggestions, views and opinions expressed by experts are their own. They do not represent the views of The Economic Times)