We view India through fundamental and technical lenses to analyse the market and select stocks. Our technical Nifty view suggests upside could extend to the 13,500-13,700 area if the index can breach the meaningful 12,470 resistance. This is roughly in line with our fundamental view of a single-digit percentage return over the next 12 months. And partly aligns with our thesis of rotation into domestic-economy stocks such as financials, which have lagged in 2020 as a result of Covid and lockdown impact.
Our top positive ideas
Our fundamental view argues for a rotation into Covid-impacted sectors as economic normalisation gathers pace through 2021 and we see laggards from domestic-economy sectors such as banking as the chief beneficiaries of such a move.