Summary 2079 | Nifty: Samvat 2079 looks more promising for Nifty bulls than last year. This is why

NEW DELHI: After a lukewarm last year that saw Nifty lose 1.42%, Samvat 2079 – the Hindu fiscal year – that started today is looking much brighter and more promising for stock market investors.

The new year is likely to culminate in the US Fed’s rate hike and quantitative tightening cycle, while inflationary pressures are also expected to ease. However, global macro uncertainties and those related to the trajectory of the war between Russia and Ukraine could lead to higher volatility.

Given the strong resilience of the Indian economy and the undeniable belief of domestic investors in the India story, analysts see Nifty past its all-time high of 18,604.45 hit on Oct. 19, 2021.

“The Indian market has so far outperformed global markets and we expect a decent increase in the coming year with targets of 20,500-21,000 expected since last year’s stagnation and with a breakout above the 18,600 zone, at least 12. of -15% expected,” said domestic brokerage Prabhudas Lilladher.

For technical reasons, Kotak Securities believes that the chances of reaching a level above 20,000 for Nifty and 66,000 for Sensex are greater than to go back to a level of 15,000/51,000.

“In the near future, 16,500-16,000/55,000-54,000 will act as a sacred support zone, while 18,000-18,500/60,000-61,500 could be the main obstacle zone for the bulls. If the Nifty/Sensex crosses the 18,500/61,500 resistance, it would move towards 19,500-20,000/64,500-66,000. On the other hand, a 16,000/54,000 layoff could send the market to the 15,000/51,000 level in the worst case scenario,” the brokerage said.

has a Nifty one-year target of 19,425 (21x FY24 EPS) with a sector bias towards Banks, Capital Goods/Infrastructure, Automotive, avoiding sectors with greater global exposure such as IT, Oil & Gas and Metals.

Brokers cite a multi-year economic upswing amid stronger macros, minimal impact from Covid, ‘China plus one’ strategy and various government initiatives such as PLI scheme and localization as key triggers for market progress.

Securities, which has a Nifty target of 20,000 for Samvat 2079, expects the index to return around 10% by the end of FY23.

“The Nifty is currently trading at 18.4x FY24E earnings, versus an average of 20x. The sustainability of the earnings recovery will be an important tailwind for the market for Samvat 2079,” it said.

For Axis Securities, the underlying market tone remains optimistic with the expected rise from 18,500-19,000 levels in the new year. Major cons are placed at 16500-16000 levels, it said.

(Disclaimer: Recommendations, suggestions, views and opinions of the experts are their own. They do not represent the views of Economic Times)

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