Larsen & Toubro remains its top pick with a target price of ₹2,520 per share implying a 16% upside. Other picks include
(target ₹660), Bosch (target ₹22,000), (target ₹168), and (target ₹2,890) – all translating into returns of 17-23%.
“Technical studies lead us to the conclusion that the Nifty is poised to reach towards 50,000 by CY30,” said ICICI Direct’s analysts in a note to clients. “More so, the performance of 2021 and 2022 further adds strength to our argument given the Nifty is mimicking our forecast trajectory. What is more exciting is that we are entering 2023, which, as per decadal studies, has turned out to be a strong year.”
On Monday, the Nifty snapped its two-day losing streak to end at 18,420, up 151.45 points or 0.83%. The index touched an all-time high of 18,887 on December 1.
ICICI Direct said its target of 21,400 in 2023 is based on ‘seasonality’.”Over the past four decades, third year returns of each decade have been positive with median of 18%,” the analysts said. “Additionally, 70% of the times a pre-election year has generated positive returns.”
The firm said mid-cap stocks are in a mid-cycle of a multi-year bull phase and are expected to outperform large-cap stocks over the next two years. Mid-cap stock could yield 20% returns in CY23, it said.