Nifty can touch 21,000 in 6-9 months: ICICI Direct

Mumbai: The Nifty 50 index has the potential to touch 21,000 over the next six to nine months, said ICICI Direct.

The domestic brokerage believes the Nifty's lifetime highs have reinforced the uptrend in Indian equities and expects Indian equities to outperform other emerging and developed markets over the next few years.

"We reiterate structural bullish stance with strong support at 18,200," the brokerage said in a client note. "The current breakout in Nifty resembles that of CY14, CY17, wherein, the index rallied 11% post breakout in subsequent six months."

However, ICICI Direct warned clients the current rally will be non-linear with a 5-7% intermediate corrections. "Staying invested through event-related volatility has been rewarding. Going by past four General elections since 2004, Nifty has gained a minimum of 11% in an election year," it said.

On Thursday, the Nifty touched a new high of 19,567. Since the lows of March 2023, the index has risen over 15%. The rally has been backed by strong and consistent foreign inflows.