Nifty Financial Services index stocks which analysts suggest buying for up to 37% returns

In the last many months when IT stocks came under pressure it was financial service stocks including banks which have been able to help the nifty recover. On days when global markets are under pressure and the nifty is showing signs of out performance. A number of times this up move is led by financial service and bank stocks. We take a look at what analysts are saying for select financial service stocks.

In the Q4 earning season where as IT sector results have pushed the market southward it has been financial service stocks including banks and other players which have been able to help nifty recover. On days when global markets are under pressure and nifty is showing signs of out performance. A number of times this up move is led by financial service and bank stocks which are announcing their Q4 result. We take a look at what analysts are saying for select financial service stocks.

For all those, who are surprised the fact that all of sudden bank nifty or finnifty witnessed a sharp fall, it would worth remembering that whether it is upward or southward movement of Nifty and Sensex, it is largely led by financial services because of high ownership of institutional investor’s both domestic and foreign portfolio investors. So if there a sell of due to risk off mode for emerging markets, which market has moved to in last few days. It is financials which are likely to lead to the decline, but, there is equal sharp recovery in them. So, be careful both in buying and selling decision in financial space.

While Nifty and Sensex have seen some respite and given the fact that few mega stocks have the ability to push indices even higher, one cannot rule out the possibility of reading the headlines “ nifty forms a new high” very soon. But as we have seen in the recent past, what nifty does and what is happening in the broader market can be very different. So, it would be better to focus on what is happening in sectors and companies, are there some tailwinds that are likely to lead to better overall growth of the sector and hence the companies. Even in those sectors stick with companies that have a proven track record of surviving economic cycles and on financial parameters they are better placed than others. Because it is finally the earnings which will determine whether the stock is able to outperform or underperform broader market indices. We take a look at four stocks where on two parameters, that is net margins and return on equity, the companies are clearly better placed and there are clear sectoral tailwinds.

Amit Trivedi, CMT. Vice President - Research at YES Securities discusses trading strategies for the upcoming week, highlighting key levels to watch and sectors and stocks to keep an eye on. Infrastructure, finance, hotels, railways, and manufacturing are expected to see higher volatility.

Power sector is one, where some basic principles of economics are turned upside down. Despite the fact that demand is always more than supply, the companies in this sector find it difficult to survive. Why does it happen and will it ever change? The story has a list of PSU power companies with“buy” and “strong buy”, reco from analysts.