Key Points
Somehow word volatility got associated with bearish trend, while it might appear strange to some, the fact is that even volatility has a bias and that can be toward bulls also..
Broader market indices have been able to recover sharply from their lows when they have opened down lower..
The only caveat is that the earning season which will be starting with large cap IT companies deliver extremely bad surprises then all bets are off..
But don't lower guard in terms of stocks selection, stay with the one where the sectoral macros are positive and individual companies have a track record both in terms of financial and management ability...
Toward the end of 2023, a narrative got built that there is no point in looking at large caps stocks, one should focus on mid and small caps..
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For a possible volatile phase due to valuation headwinds: 6 largecap stocks with right mix of RoE and RoCE
10, Dec, 23After a phase of relative under-performance to mid caps stocks, there has been a recent catch up by large cap stocks. While there is no denying that sentiment is positive, because valuations are high, any negative news will have a higher impact on stock price. So, incremental exposure should be more toward large caps. Businesses which have a track record of being able to deal with all the swings of economic cycles and even take higher advantage of economic boom. It is the large cap companies with strong balance sheets, strong brands which probably the ones which should be looked at in these conditions.
Better options in volatile markets: 5 largecap stocks from different sectors with upside potential of up t
14, Feb, 24Volatility never gives notice before coming and again on Monday, it did not give one. The difference is that this time the impact of volatility was felt by more investors and traders. There are two probable reasons, list of top loser on Monday was dominated by PSU stocks which have been the best performing set of stocks in last few weeks and that all those who only recently realized that there is something called PSU and jumped on the bandwagon are probably looking at their phone and saying why have their portfolio has fallen so hard. Second, the overall market breadth was extremely bad which means more portfolios got hit. There is a high probability that volatile movement in broader markets might continue for some time, So, it would be better to stay prepared for volatility. One of the ways for that would be to stay with large caps and especially the ones which have shown streak of outperformance at a time when other large caps have been under pressure.
Time for tactical investing: 5 stocks from 2 most unwanted sectors, but with very strong balance sheets
14, Mar, 24There is an age old saying on Dalal street, when stocks stop reacting to bad news, it means that bears have run out of ammunition and probably it is time to look at them. Similarly when stocks stop reacting to positive news, probably bulls will not be having a say in the near term. At this point of time, there is an interesting phenomenon which is playing out. While at the overall market basis, it appears that bulls may not have much to say in near term. But at the same time, there are two sectors, which have been getting bombarded with bad news for the last two years. Whether it is macro or micro, news or opinion, literally everything which has been said about them is either negative or at best neutral. But if one looks at price action on the counters on any bad news or even brokerage downgrades which is essentially an opinion stock prices are refusing to fall. Historically one of these two sectors were considered defensive,as stocks from this sector tend to outperform in bearish markets. So, is it the time to go against the narrative of negative news and get them on the watch list?
Stock picks of the week: 4 stocks with consistent score improvement and upside potential of up to 41%
02, Apr, 24Once again everything is looking green, the way FY 25 has started, it appears that bulls were on short term break due to tight liquidity conditions which tends to appear in the last month of every financial year. While the local liquidity condition might improve, the issue of high valuation is still not over. It is still a time to be cautious in terms of not going overboard with taking exposure to a certain stock, selective about what one is buying. The reason, if the street becomes selective and gets into correction mode once again, it is stocks where there has been improvements in the business operating matrix will be able to weather the storm better. 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.
Stock picks of the week: 5 stocks with consistent score improvement and upside potential of up to 25%
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For volatile market conditions: 5 largecap stocks from different sectors with upside potential of up to 24
26, Jan, 24Volatility never gives notice before coming so one should always be prepared for it. Another point to be watched, if the frequency of the volatile phase increases and it starts to happen every other fortnight, it might be an indication of strong headwinds. For a large number of investors, volatility is only when mid-cap stocks correct. But the problem is that by the time they feel the heat of the correction the price damage is very high. So, it would be better to stay prepared for volatility. One of the ways for that would be to stay with large caps and especially the ones which have shown streak of outperformance at a time when other large caps have been under pressure. Another reason for staying with large caps is that valuations are high in large part of the mid and small caps and they are the ones which might lose more weight if the markets stay under pressure due to profit booking.
Will AMC make a comeback? 4 stock with “buy” recos with up to 21% upside potential
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