For calibrating and diversifying risks? 6 midcap stocks from different sectors with the right financial ma

Whether it is the bullish or bearish phase of the markets, it always pays to stay with a better quality of balance sheet and in companies which have the ability to withstand the slowdown which every economy faces at different points of time. Especially when valuations are not cheap by any standard, it would be good to stay with large caps if one is thinking of increasing exposure to equity. 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.

As the Dalal street continues to be in party mode with minor correction and sectoral profit booking taking place, staying bullish would appear to be the most logical thing at this point of time. Why fight against a trend? While staying bullish, just add an element of caution. When we use the word caution, we mean stay with quality and especially if one is increasing exposure in midcap at this point of time. Use more stringent filters to pick stocks and cut the element of noise from investing. Quality stocks pay both in bullish and bearish markets conditions.

From being totally under the control of the bulls, Dalal street has seen occasional sightings of bears in the last four weeks. While the reasons have been different at various points of time, the first indication that bears might be getting up from their sleep are surely on the wall. So it would be better to add “ caution” to your dictionary when looking at the stock market. The caution is also getting reflected in the overall count of stocks which have seen an improvement in their score. Also more importantly, it is time to take a step back, think and then make a decision both when buying and selling any stock. These selected stocks depict a strong upward trajectory in their overall average score. This implies that there has been a significant improvement in their market outlook in the given time frame.

On Wednesday, thanks to one stock, Reliance industry, nifty was able to make a comeback. But what is more important is that market breadth, which has been under pressure for most of the sessions for the last three weeks, was in the green territory for most of the time. It is important to keep one eye on market breadth as that would be a more reliable indicator for deciding the strength and possible time frame for which the rally may last. Another thing which one should monitor closely is when the numbers of how much money has flown to mutual funds in the month of March which would get released in early April. This would be an indication of how much impact did AMFI advisory to mutual funds had on ground. Also, this would answer the question, whether this is another short term profit booking move or a beginning of a long phase correction and valuation adjustment.During this phase, analysts are bullish on select stocks from different sectors, some of which are either the leaders of their sector or part of the top three companies which are known to be well managed. 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.

In a market in which stocks of companies undergoing bankruptcy are quoting at half billion market cap, finding stocks which have value is probably not something which is an easy thing. It is time when the choice has to be made between fairly priced or overpriced. Given the sentiments, investors are more prone to buying stock first and then looking at what is the business of the company, that too is done by very few. It is exactly the time and sentiment when it becomes extremely important to go back to the basic principle of investing. Put more checks and balances before you buy the stock and the reason for buying that stock at that point of time. So as you stay bullish, be selective.

It is probably times like these, where after a long phase of trending market, some volatility and correction is coming to the street that one needs some set of rules. The reason, in the first phase of correction, the recency bias that every dip is buying opportunity will play out. The tendency to do averaging will be high. It is this set of rules which will be able to help better navigate the market when it's volatile with a bearish bias. This might appear conservative to some as it limits the scope but being conservative is a way of bringing in discipline, especially when it comes to trading. So, out of a total universe of more than 3000 stocks, how about having a set of 50 non - nifty stocks which increase the probability of you making money both in volatile and also satisfy the compulsive trader and contrarian investor in you.

As the nifty once again forms a new high and crosses some of the psychological barriers. The mood of the markets is clearly bullish, while it might appear that one is trying to spoil the party, by adding words like caution and high valuations at this point of time. The fact remains that it pays to be cautious in terms of selecting stocks when it is a bullish time. So be selective, avoid impulsive investing, and keep reviewing one’s portfolio and stay away from penny stocks especially. We look at stocks which have witnessed a continuous rise in their score in the last one month. 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.

Besides the hit which nifty and sensex have taken, what is more important is that there are more declines than advances and that is largely due to market breadth in the mid-cap segment. This is indicative of continued profit booking happening at the broader market level. At this point of time, one cannot rule out more profit booking 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.

For the last three weeks, the stock market has witnessed correction in all segments of the market. Whether it is, large, mid or small cap market breadth in all segments remained weak in a number of trading sessions. In such times, if one is looking to buy stocks it would be better to look at stocks where some fundamentals developments have made analysts turn bullish on them. 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