Since a dismal March, the Indian equities have continued to rally shrugging off pessimism in what seems to be a near V-shaped recovery, and the momentum is unlikely to stop anytime soon, Dharmesh Shah, Head – Technical, ICICI direct said in ‘The Market Podcast’ with Moneycontrol.
“We expect the Nifty to retest its all-time highs of 12,400 by March 2021, as guided by our multi-pronged approach. Sectorally, IT, Pharma, Insurance, Auto, Chemicals are expected to extend outperformance while consumption and banking are expected to catch up from hereon,” he said.
Empirical evidence depicts that post each of the three corrections measuring over 25 percent in the last 12 years, the Nifty retraced the decline completely within the following year.
“We expect it to maintain this rhythm and head to the life-time high around 12,400 levels, and any correction should be used as an incremental opportunity to construct a portfolio of quality stocks as we do not expect Nifty breaching major demand zone of 10,400-10,600 levels,” added Shah.
Shah expects 30 stocks to outperform including HDFC Bank, Axis Bank, SBI Life, IDFC First Bank, TCS, Infosys, Persistent Systems, Tata Steel, Hindalco among others.
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