Nifty 50 to near 23400 by June post General Elections 2024: ICICI Direct

Nifty 50 to near 23400 by June post General Elections 2024: ICICI Direct/Mint

VoM News Desk | April 4, 2024 | 03:59 PM IST | Breaking News | Follow on Google News

Nifty 50 to near 23400 by June post General Elections 2024: ICICI Direct

Nifty 50 to near 23400 by June post General Elections 2024: ICICI Direct

Since mid-January, the Nifty 50, representing India’s top 50 blue-chip companies, has consolidated within a 1000-point range, offering a cooling-off phase from previously overbought levels. Despite this lull, several indicators point towards an impending surge, fostering optimism among investors.

Historically, during general election years, the Nifty tends to bottom out in the first quarter, followed by a minimum 14% rally leading up to the election outcome. Anticipating a similar trend, brokerage firm ICICI Direct Research expects the index to reach 23,400 by June 2024, driven by key sectors like BFSI, auto, capital goods, and metal.

Attractive Risk-Reward Proposition

The recent 9% correction in the mid-cap index, coupled with historical bull market corrections averaging around 12%, presents an appealing risk-reward proposition for investors eyeing quality stocks. Additionally, a bottom-up chart analysis of Nifty constituents indicates many stocks approaching key support levels, setting the stage for a potential resurgence across sectors.

Large-Cap Stocks Poised to Outperform

Large-cap stocks are expected to outshine the broader market, rebounding from a crucial reversal zone. With the global equity market conditions supportive of further rally, the direct correlation of domestic markets with global counterparts adds to the positive sentiment, reinforcing the outlook for a sustained uptrend in the coming quarters.

VoM News Desk

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