These midcap stocks with ‘strong buy’ & ‘buy’ recos can rally over 25%, according to analysts

With the US Fed indicating a pause in the interest rate cycle, indications of the “risk on” trade will be back are clearly visible. Emerging markets have stabilized. This may have a rub off impact on midcap stocks which tend to do well when liquidity is in abundance. ET screener powered by Refinitiv’s Stock Report Plus lists down quality stocks with high upside potential over the next 12 months, having an average recommendation rating of “buy” or strong buy . This predefined screener is only available to ET Prime users.

On Tuesday, when the whole market was reeling under pressure, two stocks reacted to their numbers in a positive direction. Both of them were large caps from one sector which is pharma. This becomes significant from three perspectives. First, that positive reaction was there on the day when there was a bloodbath on the street. Second, these stocks were already sitting on gains, so there is little probability of short covering leading to this sort of gains. Last but not the least it has come from sectors like pharma which have seen a very long phase of business remodelling and valuation readjustment, which makes it worth noticing. It might be too early to call, but if a re-rating gets momentum then they might be candidates for volatile markets.

While the correction has been going on in the market since the middle of July, it is only on days like Monday where everyone on the street feels that equity markets are correcting. It is only a matter of time that the concept of relative valuation will come into play and large caps will get more attention from the market. Stocks from different sectors are making to the list, this week, stocks from Oil refining and marketing, private banks, insurance, auto ancillary and fertilizer space. ET screener powered by Refinitiv’s Stock Report Plus lists down quality stocks with high upside potential over the next 12 months, having an average recommendation rating of “buy” or strong buy . The screener applies different algorithms for all BSE and NSE stocks.

In an already volatile market, bears are getting help every day by unfolding global events. However there are few large cap stocks which are finding favor with analysts. ET screener powered by Refinitiv’s Stock Report Plus lists down quality stocks with high upside potential over the next 12 months, having an average recommendation rating of “buy” or strong buy . The screener applies different algorithms for all BSE and NSE stocks. This predefined screener is only available to ET Prime users.

After 6 months of relentless rally, mid-cap stocks are witnessing some correction. Will this correction last longer would depend on two things, first earnings in this space and second foreign institutional investor ( FII) flows over next two months. At this point of time analysts are bullish on select midcap stocks, ones which have seen their score improving. Stocks from sectors like sugar, healthcare and logistics are on the list. 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.