ICICI Securities says that Nifty could reach 25,200 by December 2024, with strong support at the 22,200 level, keeping in mind the historical market trend in election years.“As envisaged in Feb-24 report, Nifty sailed through election based volatility and approached our target of 23400, Post election outcome, as anxiety settles down, while reigniting expectations on reforms agenda, budgetary allocations and earnings, markets have once again resumed upward trajectory," said the firm in a note.The brokerage firm further said that since 1999, in election years, the Nifty has typically gained a median of 21% from post-election outcome lows until the end of the year.Notably, these gains often come with intermediate corrections of 4-6%, presenting buying opportunities. Since June 2022, each 10% correction in the Nifty has been followed by a 20% rally over the subsequent six months.
Applying a similar projection from the election result day low suggests a target of 25,200 by the end of December."Nifty continues on the path of our CY30 target of 50000, as part of Decadal cycle projection and we reiterate the structural bullish stance for CY30 as well as for CY24. Our composite model projects Nifty target of 25200 by December 2024, with strong support at 22200 levels," it added.The current global scenario reinforces the upward trend hypothesis.
Over the last five election years, U.S. markets have typically surged by an average of 9% from June to December.Structural shift in domestic inflow has helped mitigating impact of Fll selling, by providing depth.
Read more on livemint.com