ICICI Direct expects Nifty to hit 18,600 by the end of year as financial, IT, auto, capital goods and state-run firms drive gains for the bourse.
The brokerage said dips should be used for buying as strong support is available at 16,800. At the time of writing, Nifty was at 17,597.80.
ICICI Direct added that domestic equities are well supported by positive correlation with US indices which have signalled an end to the corrective phase.
"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.
On July 28, ICICI Direct had increased Nifty target to 17,500 points by August-end suggesting buying on dips amid softening crude oil prices and a lower inflation print in June.
Below are top picks of the brokerage:
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, Mazgaon 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 ,Dabur, Jyothy Labs, Radico Khaitan, Havells, Astral Poly Technik
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
Metals: Tata Steel, JSW Steel, Hindalco, Jindal Stainless
Others: ABFRL, Indian Hotel, Zee Entertainment, Dixon Tech. GE Shipping, Tejas Networks, Tata Communications, TCI Express, Navin Fluorine, Bajaj Electricals, Prestige EstatesDisclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before making any investment decisions.