After undergoing 18 months of consolidation and a 16% correction, the benchmark index Nifty appears to have reached maturity in both price and time terms. ICICI Securities stated that this pattern suggests the formation of a durable bottom and indicates potential for the next leg of a bull market. The brokerage expects intermittent bouts of volatility, with strong support around the 21,200 level.
ICICI Securities highlights banks, energy names, and select midcaps as likely outperformers. Stocks such as Kotak Bank, Axis Bank, Bank of Baroda, Bajaj Finserv, South Indian Bank, and SAM India are expected to perform well. In the oil, gas, and power sectors, Reliance Industries, HPCL, MRPL, NTPC, Tata Power, and JSW Energy are preferred. Other potential outperformers include Bharti Airtel, Indoco, Elgi Equipment, Data Pattern, Syrma, and NRB Bearings.
