Traders continue to bet on rate divergence; rupee remains sideways to bearish
The Indian Rupee showed some strength at the start of June, although historical trends suggest a bearish outlook, and India's forex reserves have declined for two consecutive weeks, reaching $589.14 billion. Key Points
FinancialexpressRIL May gap down 3-4% at open
RIL stock is expected to gap down by 3-4% at open after Q1 results release. Open interest rose 137% and bearish sentiment indicated by falling price and put sellers. Key Points
mintInvestors most underweight stocks versus bonds since 2009, BofA says
In the most bearish survey of this year — the first after banking turmoil roiled markets last month — investors indicated that fears of a credit crunch had driven up bond allocation to a net 10% overweight — the highest since March 2009. A net 63% of participants now expect a weaker economy, the most pessimistic reading since December 2022. Key Points
Economic TimesFor calibrating and diversifying risks? 6 midcap stocks from different sectors with the right financial ma
As the Dalal street continues to be in party mode, staying bullish would appear to be the most logical thing at this point of time. Why fight against a trend, while staying bullish, just add an element of caution. When we use the word caution, we mean stay with quality and especially if one is increasing exposure at this point of time. There is enough evidence to show that owning quality stocks pays both in bullish and bearish markets conditions. In a bullish market, they tend to rise faster and when a bearish phase comes, they do lose weight like others but less as compared and have shown tendency to recover fast post a bearish phase. so stay bullish but be selective. Key Points
Economic TimesStock picks of the week: 5 stocks with consistent score improvement and upside potential of up to 40%
When should one be cautious, in a strong trending bullish market which has lasted for months or bearish markets? The answer is both, in case of a bullish market cautious in “what is one buying” and in bearish markets, “what is one selling”. The reason selling a good stock just because the market is in a bearish phase is as bad a decision as buying the wrong stock. But at this point of time we are in a strong bullish phase, it is time to be cautious while buying. So look at stocks where analysts' outlook has improved over the last one month. These selected stocks depict a strong upward trajectory in their overall average score which is based on five key pillars i.e. earnings, fundamentals, relative valuation, risk and price momentum. This implies that there has been a significant improvement in their market outlook in the given time frame. Key Points
Economic Times
Market Trading Guide: IDFC First Bank among 2 stock recommendations for Wednesday
On the technical charts, Nifty formed a huge bearish engulfing candlestick. It broke the crucial support of 21,300 with a head and shoulder pattern. Now the next support lies at 21,000 coinciding with the 50-day moving average (DMA), says Sheersham Gupta, director and senior technical analyst at Rupeezy Key Points
Economic TimesAdding more filters to counter valuation risk: 5 midcap stocks from different sectors with right mix, 2 wi
The market sentiment is bullish but valuations are high. Why fight against a trend, while staying bullish, just add an element of caution. When we use the word caution, we mean stay with quality and especially if one is increasing exposure in midcap at this point of time. There is enough evidence to show that owning quality stocks pays both in bullish and bearish markets conditions. In a bullish market, they tend to rise faster and when a bearish phase comes, they do lose weight like others but less as compared and have shown tendency to recover fast post a bearish phase. so stay bullish but be selective. But how to be selective, right from whether the company pays dividend to how it is debt situation, whether promoters have reduced the stake or not if yes than why, these are additional aspects to look at besides looking at the matrix of ratios. Key Points
Economic TimesBack testing high dividend yield stocks, it works in bearish markets; 4 such stocks for tough times
One of the hypotheses of investing in high dividend yield stocks is that dividend yield acts as a cushion in bearish markets and makes them outperform. We back tested four stocks in bearish markets conditions, it works for some. Key Points
Economic TimesAhead of Market: 10 things that will decide D-Street action on Tuesday
“Nifty ended at the lowest since mid October. A breach of 17087 level on the Nifty could result in a fall towards 16747. Up moves could face resistance at 17325,” said Deepak Jasani, Retail Research Head, HDFC Securities, said. Key Points
Economic TimesBig Movers on D-St: What should investors do with Tech Mahindra, NCC and HAL?
The stock respected its prior highs connecting the rising trendline, as it reversed before testing that line. Though, the stock rose to a lifetime-high of Rs 2,914 on 13th March 2023, later reversed and formed a bearish engulfing pattern right after multiple indecisive dojis on the daily timeframe chart. Key Points
Economic Times
To take care of possible headwinds: 4 largecap stocks from different sectors with upside potential of up t
Market has a strange habit of giving surprises on both sides, moving up when no one is expecting and news is bad all around. Falling when no one is expecting it to fall and there is good news all around. So, in today’s time when there is good news all around, right from higher GDP numbers to better GST collections and on micro front companies announcing more orders and even words like expansion of capacity coming back, instead of predicting the time when there will be a correction, just be ready for it. Ready by staying with large caps and that too with sectors and stocks where some tailwinds are emerging. This is not to say that there cannot be some underperformance in large cap space, but the fact is that over the long term these large caps not only create much more wealth but in a bearish phase, they tend to protect the wealth by falling less as compared to mid and small caps. Key Points
Economic TimesAhead of Market: 10 things that will decide D-Street action on Wednesday
The blue-chip NSE Nifty 50 index declined 0.99% to 21,522 points and the S&P BSE Sensex fell 1.11% to 71,140. Both the benchmarks had risen about 1.8% on Monday to log their best session in eight weeks. Key Points
Economic TimesStock picks of the week: 5 stocks with consistent score improvement and upside potential of up to 24%
While the volatility has been in nifty every now and then, the difference this week was that the mid-cap segment also participated in the correction and breadth was negative. This is indicative of profit booking happening at the broader market level. At this point of time, one cannot rule out volatility with strong bearish bias and more damage to stock prices in the mid-cap segment. In such times, if one is taking fresh exposure to equity, ensure that there is some level of quality as far as the business and fundamentals are concerned. These selected stocks depict a strong upward trajectory in their overall average score which is based on five key pillars i.e. earnings, fundamentals, relative valuation, risk and price momentum. This implies that there has been a significant improvement in their market outlook in the given time frame. Key Points
Economic TimesNifty Bank falls nearly 1%, forms bearish Marubozu candle on daily charts
Federal Bank, AU Small Finance Bank, and Kotal Bank closed with losses of over 2% each, while some buying was seen in HDFC Bank. The Nifty Bank witnessed sustained selling pressure throughout the trading session, which resulted in the formation of a bearish Marubozu candle on the daily charts. Key Points
Economic TimesFor all times: 5 largecap stocks from different sectors with upside potential of up to 31%
Whether it is the bullish or bearish phase of the markets, it always pays to stay with a better quality of balance sheet and in companies which have the ability to withstand the slowdown which every economy faces at different points of time. Especially when valuations are not cheap by any standard, it would be good to stay with large caps if one is thinking of increasing exposure to equity. ET screener powered by Refinitiv’s Stock Report Plus applies different algorithms & filters to all BSE and NSE stocks, and lists stocks which fulfill the various criteria as specified into the algorithms & filters to find those which might help navigate the stock market. Key Points
Economic Times
Ready for another round of outperformance? 4 tile and ceramic product maker stocks with upside potential o
Like many industries, home building products like ceramic tiles got a sharp re-rating in the last couple of years. Any company with a strong brand got to valuations which were much higher than average valuation they got in years. As it happens, when valuations reach an extreme high zone, self correction sets in. Stocks move in a broad range, they tend to under perform in a bullish market, but at the time in a bearish market they outperform by falling less as compared to another. Essentially, they witness a time wise correction for a period where earnings reach a level that their valuations become normal. After becoming normal, the probability of another round of strong upward movement increases. Key Points
Economic TimesHedge funds short US financial stocks at near record levels -Goldman Sachs
Global hedge funds built bearish positions this week to the highest level in nearly five years, Goldman Sachs (GS.N) said on Friday, without citing the underlying reasons. Key Points
ReutersStock picks of the week: 5 stocks with consistent score improvement and upside potential of up to 33%
Even at the time of volatility movement with slightly more bearish bias which the nifty and broader market has witnessed in the last four weeks, some stocks have witnessed consistent improvement in their scores, which makes it worth looking at them. The stocks from sectors like power distribution, tech based marketplace, have come to the list. But this time there is a difference, a number of these stocks where the score has improved the recommendation has stayed as “ hold”. So, there is an element of caution which seems to have come into broader analyst recommendations. Key Points
Economic Times5 midcap stocks that beat volatile markets have an upside potential of up to 32%, according to analysts
On the face of it, to many it might appear that the stock market has gotten into correction recently. However, the fact is that a large part of the stock market has been in bearish territory since November 2021. A look at market breadth will show that the number of mid caps which have shed weight is far more than stocks which have gained weight. ET screener powered by Refinitiv’s Stock Report Plus applies different algorithms & filters to all BSE and NSE stocks, and lists stocks which fulfill the various criteria as specified into the algorithms & filters to find those which might help navigate the stock market. Key Points
Economic TimesRest of 2023 is going to be a stock picker's market: Gautam Shah
I think that the trend is clearly down. Pullback rallies should be sold into. This has been the stance for the last two and a half months and it remains. So do not get carried away with the uptick. I think that is the advice that we are putting out to our clients as well. Key Points
Economic Times