These largecaps have ‘strong buy’ & ‘buy’ recos and upside potential of more than 20%
market breadth, volatility is back. As the valuations are still in high zone and even a small correction can lead to sharp cut in stock prices it would be better for any investor in a corrective phase that fresh investment should be made in large cap stocks as there is a possibility that they would see less damage in correction which might continue for some more sessions. In the near term some more profit booking cannot be ruled out in sectors on a rational basis, but over a period of time it is likely that underlying sentiment will remain bullish. Though the decider of the trend would be the election results.
When markets are trading with strong bullish bias, some of the stocks tend to move off from the list of algorithm based stock buying lists. This includes even the best of long term wealth creators. The reason, the potential upside in them is less than the algo defined levels. As soon as the market corrects, some of them are back on the list. As they are back this week, stocks like Bajaj finance and Kotak mahindra bank, Hdfc banks are back on the list. Even some of the new age which after the recent run up had gone off the list are back on it.
Methodology used in filtering the list of stocks:
Stocks with a minimum of 10 analysts providing with a upside potential of a minimum of 20%
Stocks with price targets provided by a minimum of 10 analysts are selected. Then the average price targets for all the selected stocks are calculated where analyst target prices are available over the next 12 months. This average
