HDFC Bank, Reliance, SBI, Adani Port, TCS others to propel Nifty 50 to 25,550: ICICI Direct

Analysts at ICICI Direct recommended that investors should navigate the volatility, noting that the Nifty 50 is poised for an upward movement towards 25,500. The domestic brokerage firm indicated that its statistical model implies that much of the negative news is already factored in, and has formed a base around the range of 21,900-23,800, which could ultimately pave the way for the Nifty 50 to move toward 25,500 in the upcoming two quarters.

Further, the brokerage pointed out that the emphasis should be on domestic themes rather than international ones, where it anticipates financials will maintain their leading position, bolstered by PSU, Metal, Telecom, Pharma, and Consumption sectors, while IT, Capital Goods, and Infrastructure present an attractive risk-reward opportunity.

Among the top picks by ICICI Direct are SBI, HDFC Bank, Kotak Bank, HAL, BEL, L&T, ABB, KEC, Timken, Reliance Industries, HPCL, NTPC, TCS, Tech Mahindra, Titan, Indian Hotels, Amber, DLF, Godrej Properties, Ultratech Cement, JK Lakshmi, Bharti Airtel, and KPR Mills.

During Tuesday's (April 22, 2025) trading session, the Nifty 50 wrapped up with a gain of 0.17%, ending at 24,167 points. The Indian stock market maintained its upward trajectory for the sixth consecutive session on Tuesday, even amid a lackluster performance from Wall Street, as significant gains in the financial and auto sectors, along with a remarkable recovery in FMCG stocks, propelled benchmark indices to close positively. Additionally, metal stocks and real estate stocks provided support to the benchmarks.

Nifty 50 : Price/Time action approaching buy zone…

The analysts noted that alongside historical data, the Nifty 50 has experienced a 17% correction over the past seven months, indicating it is nearing the completion of a correction both in terms of price and time. After this correction, the index typically enters a base formation while absorbing a variety of negative news.

During this period of base formation, it is crucial to monitor for signs of structural improvement, which should be supported by enhanced market breadth, as well as a process of momentum and sentiment indicators stabilizing from their bearish lows, setting the stage for the next upward movement.

“In current scenario, combination of market breadth and sentiment indicators point towards pullback as all four components have seen significant improvement after recovering from bearish extremes. Empirically, buying in such scenario has been rewarding, delivering an average return of 23% over the subsequent twelve months. Hence, dips should be capitalized to accumulate quality stocks to build portfolio from medium term perspective,” said ICICI Direct technical experts.

Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.