Nifty Is Headed To 16,800 By Dec 2021. Top 9 Stocks To Buy Now With Up To 35% Upside

Discussion in 'Must-Read Interviews, Articles & News Items' started by Arjun, Jan 7, 2021.

  1. Arjun

    Arjun Chief Executive Officer (CEO) Staff Member

    Mar 19, 2015
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    Axis Capital has predicted that the Nifty is headed to 16,800 by Dec 2021. It has recommended nine top-quality stocks which have an upside of up to 35%. The select list includes stocks from Telecom, Pharma, FMCG, Banks, Infra, Autos, Insurance and Cement.

    Goldman Sachs was perfectly correct in its prediction about Nifty 14,100

    In November 2020, Goldman Sachs had confidently predicted that the Nifty would effortlessly reach a target of 14,100.

    Our Asia strategy team upgraded India to ‘overweight’ and revised its Nifty target to 14,100 by end-2021,” the elite global investment bank had said (see Forget Nifty 13,000, Get Ready For Nifty 14,100: Goldman Sachs Predicts Super-Surge & Recommends Top Stocks To Buy).

    At that time, the prediction was met with much disbelief in Dalal Street and had caused a lot of hullabaloo amongst investors and punters.

    However, it is a fact that the Nifty surpassed that level as well.

    Thereafter, Jefferies, also an elite foreign brokerage, predicted that the Nifty would head to 15,800 by the end of 2021 (see Get Ready For Nifty 15,800 By Dec 2021. Check out the top 10 stock picks of Jefferies).

    "The macros are favourable. The economy recovered smartly from the COVID lows despite a small, sub-2% fiscal support from the government. The recovery is private-driven and hence more sustainable. The COVID situation appears well under control," it was noted.

    "A strong FY22 with an expected GDP growth of 13% is expected, helped by the low base and cyclical upswing driven by the housing upcycle," it was added.

    Jefferies has also very kindly cherry-picked the top-10 stocks that we have to buy in order to participate in the riches.

    GDP will grow at a supercharged pace of 12.5 per cent in 2021-22. Nifty will surge to 16,800.

    Axis Capital, also a distinguished brokerage firm, has opined that the Nifty will not rest until it has reached the rarified level of 16,800.

    While corrections are inevitable, our view of Nifty scaling new highs of 16000+ is driven by benign liquidity, improving macro and improving earnings cycle,” the brokerage firm has said according to a report in the ET (link).

    Industry leadership remains an advantage that will only get magnified till the economic recovery gets broad-based and markets will continue to assign higher multiples to exceptional businesses and managements,” it was addded.

    Axis Capital opined that India’s GDP would grow at a supercharged pace of 12.5 per cent in 2021-22. Recovery will remain consumption-driven with some support from exports, it said.

    It cautioned that the risk to the macro-economic and liquidity outlook comes from inflation. However, it opined that this is a manageable risk for equity since the RBI can protect rupee given that our forex reserves are more than $580 billion.

    Top nine stocks to buy now

    Axis has recommended nine stocks which are likely to give us the best gains.

    These stocks are the following:

    Bharti Airtel (Target 700, 35% gain),
    Dr Reddy's Laboratories (Target 6,100, 16% gain)
    Godrej Consumer Products (Target 870, 15% gain)
    ICICI Bank (Target 630, 18% gain)
    Larsen & Toubro (Target 1,515, 15% gain)
    Mahindra & Mahindra (Target 860, 15% gain)
    State Bank of India (Target 330, 17% gain)
    SBI Life Insurance Co (Target 1,120, 23% gain)
    UltraTech Cement (Target 6,500, 22% gain)

    (Image Credit: ET)
    Last edited: Jan 7, 2021