Indian equity markets were flat on Friday. Given the global developments, market volatility is expected to remain high in the near term. However, economic recovery coupled with government focus on Capex and domestic manufacturing would drive overall growth in FY23, according to experts. ICICI Direct said in its report that Nifty is on road to recovery towards 18,100. It believes that buying on decline strategy should continue to work in favour of market participants and investors should focus on accumulating quality stocks on dip as Nifty is not expected to breach 16,800. Reliance Industries, Titan, SBI, Infosys, Tata Motors remain among the top stock picks.

Nifty may head towards 18100, accumulate quality stocks on dips

According to analysts at ICICI Direct, buy on dips strategy fared well for investors during March 2022 correction. Going ahead, they expect Nifty to resolve higher form base formation that was formed above 52 week’s EMA & gradually head towards 18100 in April 2022. “Hence, we believe that buying on decline strategy should continue to work in favour of market participants,” it said. Investors’ focus should be on accumulating quality stocks on dip as Nifty is not expected to breach the key support threshold of 16,800 zone, it added.

Top stock picks

BFSI –  State Bank of India (SBI), HDFC, Axis Bank, Bajaj Finserv, Bank of Baroda

Technology & Telecom –  Reliance Industries (RIL), Infosys, LTI, Mindtree, Persistent

Capital goods – L&T, Thermax, Grindwell Norton, SKF India ,Siemens

Consumption – Titan, ITC, Bata India, United Spirits, Voltas, Trent

Auto – Tata Motors, Bajaj Auto, Balkrishna Inds, Minda Corp

Infra and Realty – Ultratech Cement, DLF, Brigade Enterprises, Phoenix Mills.

Pharma – Sun Pharma, Cipla, Divis Laboratories, Laurus Labs

PSU –  Concor, BEL, HAL, BEML, Canara Bank

Metal –  JSW Steel, Tata Steel, Hindalco, JSPL, NMDC, JSL

Others – ABFRL, Adani Ports, Balrampur Chini, TV18 Broadcast, Easy trip Planners, JK Paper, Gokuldas Export, Navin Fluorochem

Bank Nifty outlook positive, buying opportunity in quality banking stocks

The Bank Nifty saw buying demand from near the major support area of 32,500 last month. It rebounded over 14% in just two weeks from extreme oversold territory. In the process, it retraced 61.8% of recent decline at 36,600 in just two weeks. “Going ahead, the overall bias remains positive. The current temporary breather of last two weeks should not be seen as negative, Instead it should be capitalised on as buying opportunity in quality banking stocks,” said ICICI Direct.