- 02 Nov 2021
- ICICIdirect Research
STRUCTURAL UPTREND INTACT, TIME TO BUY
What’s Buzzing:The Nifty corrected ~6% from lifetime highs of 18600 whereas below the surface correction in some of the run up midcap stocks have raised concerns about sustainability of ongoing bull trend.
Context:Over the past 18 months, there have been three intermediate corrections on Nifty, each measuring average 9%, followed by index challenging the fresh 52 week high again in following couple of months. Similar rhythm was also observed on Nifty midcap indices where price corrections to the tune of 9%-10% over past 18 months have presented a buying opportunity to ride structural uptrend.
Our perspective:We expect the Nifty to maintain its rhythm of the past 18 months as structural uptrend is very much intact. Investors should therefore not construe ongoing corrective phase negatively, rather accumulate quality stocks as we do not expect the Nifty to breach strong support zone of 17100-16900 and eventually challenge lifetime highs of 18600 in coming months.