Nifty Stock Market Outlook: Bull, Base, and Bear Case Scenarios with High-Conviction Ideas

In an optimistic outlook, InCred Equities predicts that Nifty could reach as high as 28,575. However, they also have a more conservative base case target of 25,977 and a bearish case target of 23,379. This suggests some potential volatility in the near future for Nifty.

The brokerage firm has upgraded its rating on the pharmaceutical sector to ‘Overweight’ and specifically mentioned that they favor Cipla, Ipca Laboratories, and Alkem Laboratories within this sector. They are cautious about the delays in RBI rate cuts and are closely monitoring the recovery in earnings growth.

With the recent political developments giving a strong mandate to the BJP in Maharashtra, the second-largest state in the country, InCred Equities expects government capex plans to be revived soon. Despite a significant drop from its peak in mid-September, Nifty valuations have eased, although ongoing earnings cuts continue to be a concern.

In addition to their market outlook, InCred Equities has shared some high-conviction stock ideas. These include Bajaj Finance Ltd, Bharat Forge Ltd, HDFC Bank Ltd, Lupin, Tata Steel Ltd, Hero MotoCorp, Cipla, and State Bank of India, among others. They also mentioned Tata Consultancy Services (TCS), InterGlobe Aviation, Maruti Suzuki India, Cyient DLM, Petronet LNG, and SBI Card as potential opportunities with up to 94 percent potential upsides on these stocks.