According to ICICI Direct, the Nifty 50 may be heading back towards its lifetime high of 15,430 in the coming months, after holding a main support level during the recent correction. For the last few weeks, the benchmark NSE index has been in a downtrend, but it has managed to stay above 14,200. Despite fears of updated lockdowns and the second wave of coronavirus, key support levels were maintained. Earlier this year, during the post-budget rally, Nifty hit an all-time high and has been trading range-bound with a negative bias since then.
"Despite anxiety around surging Covid-19 cases across India, the index managed to hold the key support threshold of 14200 on multiple occasions, highlighting elevated buying demand emerging after approaching maturity of price and time-wise correction,” ICICI Direct said in a note.
Since March last year, Nifty has not corrected more than an average of 9% while time wise not extended correction for more than 2-3 consecutive weeks. Nifty holding above 14,200 signals buying interest, as the index has maintained the rhythm above this level.
The predicted rise in the Nifty 50 will be followed by stock-specific movement in the wake of quarterly results. Investors should use dips towards 14,200 as a buying opportunity, according to ICICI Direct, since the 100-day EMA is set at those levels.