Volatility in market is different from volatile business: 5 large cap stocks with upside potential ranging

As broader market indices, sensex and nifty continue to form new highs some minor consolidation is happening in markets. During this period, some stocks have witnessed consistent improvement in their scores. The 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.

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The equity markets globally, both emerging and developed have moved into a correction mode. How long this correction continues is anyone's guess. In such times it would be better for both traders and investors to stay with stocks which have shown tendency to fall less in a bearish market. 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.

While it might be too early to call or to some it might appear to be wish of which bears on the street would have, but the way the market has panned out at the start of 2024, there is probability of a selective correction taking place. So, it is stocks where there are some improvements in the business operating matrix that tend 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.

Once again on wednesday, there was minor correction in nifty, but more tremors were felt in the mid-cap part of the market. While it might be too early to call it even a corrective move, because this could be due to profit booking just before the expiry of the weekly option contract today. But because volatility never gives notice before coming, it is better to be prepared for it, by staying with a set of stocks which have a higher probability when a storm hits the street. While there is no full proof way, putting some filter would help at least in avoiding some mistakes. So, staying with the large caps segment, in that too staying with sectors where the market size is big and as is likely to grow at a certain rate due to basic nature of the business, then looking if the analyst score has moved higher in the last one week which has been a volatile period for the market.

While investing in stocks always comes with risks, these stocks pose unique challenges.

While the markets have been correcting for some time, the pain of correction has been being felt more in the last three to four weeks. The reason, extremely negative market breadth and that too in the mid-cap segment. Until recently, corrections did not appear to be very obvious because one or the other sector kept witnessing sharp up moves and the whole focus of the market went there. So, sometimes it was railways stocks, sometimes power PSUs which keep the noise levels high. The reality is that corrections come and go, the only thing any investor needs to make sure of is that in any corrective phase, bias when making fresh investment should be toward large cap stocks as there is a possibility that they would see less damage in corrections which are stronger in nature due to global or macro developments. 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.

Three promoter entities cumulatively sold around 3% stake in Kolte-Patil Developers for Rs 111 crore through the open market on Friday.