Stock picks of the week: 4 stocks with consistent score improvement and upside potential of up to 33%

In the last two months, there have been phases where the nifty has witnessed a short correction which lasted for anywhere between two to four days. The only difference is that unlike the past when such correction took place, this time when corrections are taking place mid-cap segment also participated. This is indicative of profit booking happening at the broader market level. At this point of time, one cannot rule out volatility which can bring 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.

As more stocks from different sectors see an improvement in their analyst scores, it is important to be selective before being bullish when looking at stocks. 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.

Bulls are in control of both, Nifty and market breadth. Some stocks have seen an improvement in their analyst scores during this period. 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.

Buy or sell stocks: Sagar Doshi of Nuvama Professional Clients Group recommends buying these three stocks today - Zydus Lifesciences Ltd, Larsen & Toubro Ltd, and EIH Ltd.

In the last two months of the market, while the midcaps have done well, though the pace at which the outperformance was taking place has slowed down. So, there is a profit booking taking place in different parts and sectors. Part of this profit booking is due to the fact the valuations are high and probability that it would continue. At this point of time one should also focus on reducing risk.In reducing market risks, investors should integrate both quantitative and qualitative criteria to assess stocks, aligning expectations with realistic market performances and avoiding impulsive shifts based on short-term fluctuations. This involves a disciplined approach to examining fundamentals, particularly focusing on crucial financial ratios such as Return on Equity (ROE) and Return on Capital Employed (ROCE). These measures help in evaluating a company's efficiency and profitability, guiding investors away from making hasty decisions which are mostly done in a bullish market.