Stock picks of the week: 5 stocks with consistent score improvement and upside potential of up to 34%

Once again the US banking system has given jitters to global markets. However, even before that market has been under the control of bears. Stocks which have seen a constant improvement in their scores even in such volatile times are worth looking at. 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.

At a time when everything on the street appears good and green, there is a case of being selective. The reason, if it is in a raging bull market, the street never stays in this all good and green mode forever.when the street starts to become selective, it is stocks where there are some improvement in the business operating matrix tend to weather the storm better. So as an investor, one needs to look at every sector and company and their operating and valuation matrix separately. 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.

In the correction that markets saw in the last four trading sessions, the financial sector stocks, right from banks to other players also declined. But if one looks at the magnitude and the internal breadth of the sector it was much better as compared to a month back when the market correction was started by HDFC bank. There was a bit of profit booking in the PSU bank space, but once again after a small corrective move, things were back with a strong intraday recovery. The way things are panning out in the industry with regulatory tightening taking place, there is very likely that we might see a divergence in performance of different segments of this sector which has the highest correlation with the GDP growth. Better balance sheets and strong franchise are likely to be the differentiating factors. The factor which is largely technical in nature is the shareholding patterns that will also impact the performance of the stocks from this sector.

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.

After a minor correction, markets are once again on roll. This time the upward movement has been led by IT stock. When it comes to nifty and sensex, it is dominated by IT and financial services. So as the financial services stocks take a breather, a sectoral turn is taking place and the nifty is moving upward. Now because IT stocks have come into focus after a gap of two years, it needs to be watched how much they are able to push the market. While the party continues on the street, it would be better for investors to focus on what is happening to the individual stocks they own and how the operating matrix of that sector is shaping up. 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.

Whether it is Nifty, Banknifty, Nifty Auto, Nifty real estate, all the indices and the market breadth are indicating that bulls are not only in control of the street but also every corner of the street. The corrections are short lived. Even when there is a correction and volatility the bias of that volatility is still bullish, as indicated by an attempt of nifty to move upward by the end of the trading session. These stocks have seen their score improvement and some of them have moved out of negative territory over the last one month. 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.

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