Geopolitical conflicts between Russia and Ukraine have impacted global markets. There are indications that foreign ministers from Russia and Ukraine will meet in Turkey today in order to find a solution to end the war. Considering this and the latest developments in the market, analysts have given targets for benchmark indices:
Sensex
Global Brokerage Morgan Stanley has lowered its target for Sensex for December 2022 from 70,000 to 62,000, with a downside of 11%, and an upside of 16% from current levels. It has revised its bull case target to 75000 and has increased its bear case target from 50,000 to 45,000.
“Our revised BSE Sensex target of 62,000 implies upside potential of 16% to December 2022. This level means that the BSE Sensex will trade at a trailing P/E multiple of 25x, ahead of the 25-year average of 20x. The premium over the historical average reflects higher confidence in the medium-term growth cycle in India,” it added.
“India is currently running all-time high real policy rates relative to the US, which coincides with strong relative performance vs EMs. We expect this gap to narrow combined with lower outperformance for Indian stocks,” it said.
“Indian equities have so far resisted the rise in oil prices. While the template remains one of high volatility and modest equity returns, at the portfolio level we recommend a shift to a barbell strategy with wider sector positions,” it highlighted.
Nifty
Prashanth Tapse, Vice President (Research), Mehta Equities has given a target for Nifty. According to him, Nifty’s biggest support for the day is placed at the 15921 mark. He suggested that buying on dips should be the preferred strategy as long as the Nifty stays above the 15921 mark and gave targets at the 16695 marks and aggressive targets at the 16953 mark
“The short term trend of Nifty seems to have reversed up. The overall positive chart pattern signals a possibility of Nifty moving towards the important resistance of 16,800 levels in the next few sessions. Immediate support for NSE Nifty is placed at 16,200 to 16,150 levels.” said Nagaraj Shetti, Technical Research Analyst at HDFC Securities.
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