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Prabhudas Lilladher, a leading brokerage firm, has predicted a bullish trend for the Nifty 50 index in the next 12 months. The benchmark index is expected to reach the 25,816-mark, surpassing its current level of 23,465.60. This optimistic outlook is attributed to India’s strong macroeconomic fundamentals and positive investor sentiment. In a recent report, Prabhudas Lilladher revised its 12-month target for Nifty 50 to 25,816, up from the previous target of 25,810. The index has shown a 4.4 percent uptrend over the past two months, demonstrating resilience amidst market volatility during the Lok Sabha elections in 2024. The BSE small cap and mid-cap indices have also performed well, showcasing investor confidence and a positive market breadth.
Prabhudas Lilladher’s outlook for Nifty 50 includes key support levels and potential triggers for further growth. The near-term support for Nifty is around the 23,200 zone, with a decisive close above 23,500 likely to drive the index towards the next target of 23,800. The brokerage firm anticipates that factors such as a progressive budget, normal monsoons, and strong inflows will contribute to a re-rating of the markets in the next 12 months. Moreover, Prabhudas Lilladher has provided bullish and bearish scenarios for Nifty 50, with bull case and bear case targets set at 27,102 and 23,235 respectively.
In addition to the overall market outlook, Prabhudas Lilladher also shared its sectoral preferences and high conviction stock picks. The brokerage firm is overweight on sectors such as automobiles, banks, asset management companies, capital goods, defense, hospitals, pharma, cement, aviation, and discretionary consumption. Prabhudas Lilladher has increased weights behind capital goods, telecom, and cement sectors, while reducing exposure to IT services and oil & gas. Within the banking sector, the firm is bullish on HDFC Bank, citing strong credit growth and asset quality. In the healthcare sector, Prabhudas Lilladher favors generic pharma players and hospitals, with a positive outlook on companies like Sun Pharmaceuticals and Max healthcare.
Moreover, Prabhudas Lilladher has added BEML and ITC to its high-conviction stock picks, replacing Navneet Education, Safari, and Grindwell. BEML is positioned for long-term growth in the defense and railways sectors, while ITC is expected to benefit from a steady outlook and budgetary considerations. The brokerage firm believes that ITC’s upcoming de-merger of the hotels business and potential upside indicate a promising investment opportunity. Overall, Prabhudas Lilladher’s recommendations reflect a positive sentiment towards key sectors and companies, aligning with the broader bullish outlook for the Nifty 50 index.
