The Nifty, which topped its previous pre-COVID high of 12,430 to rally 14 percent in November on strong global cues and foreign institutional fund flow, may undergo consolidation amid positive bias in the 12,800-13,200 range in December, ICICIdirect has said.
It maintains a constructive stance with an incremental shift towards broader markets.
“A decisive move above 13,200 would signal an extended rally towards 13,600. Hence, we recommend utilising declines as an incremental buying opportunity as we do not expect the Nifty to breach its key support at 12,500 levels,” it said in a report.
The midcap and smallcap indices have extended their up move after a higher base formation in September and October.
“We expect both indices to witness acceleration in upward momentum and outperform the Nifty in coming months as a) Nifty midcap and small-cap indices have registered a resolute breakout from the three-year falling channel signalling resumption of the primary uptrend, further validated by robust market breadth, b) globally, Russell 2000 and Stoxx 600 have also registered multi-year range breakouts,” the report said.
Historically, positive correlation of domestic indices with global peers gives confidence.
ICICIdirect picked 28 stocks, including M&M Finance, Persistent Systems, Cyient, Matrimony, Thermax, Aarti Industries, Bharti Airtel and Concor, which it says are bargain buys at current levels. Here is the list:
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