Domestic brokerage and research firm Axis Securities continues to maintain a positive long-term outlook on the market, supported by a favorable structure to improve credit growth to banks raising capex.
The brokerage house has kept its Nifty March 2023 target unchanged at 18,400. “While aggressive policy tightening will help in easing inflationary pressures, we believe that continued rise in oil and commodity prices will pose challenges to the market over the next few quarters,” the note said.
The current level of the India VIX is below its long-term average, indicating that the market is in a neutral zone (which is neither panic nor bullish territory). While the medium to long term outlook for the overall market remains positive, the brokerage said volatility may be witnessed in the short term as the market is reacting in either direction.
“In this context, the current setup is a ‘buy on dips’ market. We recommend investors to maintain good liquidity (10%) to invest in quality companies (where earnings visibility is very high) and 12-18 months. Use such declines in a phasing manner with horizon,” Axis Securities said.
Based on the above themes, the brokerage has recommended the following stocks: lifts up ICICI Bank with a target price of which for the month of November is 1,150, Tech Mahindra (TP: 1,200), Maruti Suzuki India (TP: 10,600), State Bank of India or SBI (TP: 665).
It also has buy tags on Dalmia Bharat (TP: 1,850), Federal Bank (TP: 155), Varun Beverages (TP: 1,300), Ashok Leyland (TP: 175), Astral Limited (India) (TP: 2,500), Bata India (TP: 2,200), APL Apollo Tubes (TP: 1,200).
Healthcare Global Enterprises (TP: 330), Praj Industries (TP: 550), CCL Products (India) (TP: 600), Polycab India (TP: 3,080), and Bajaj Finance (TP: 8,600).
The views and recommendations given above are those of individual analysts or broking companies and not of Mint.
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