Stock picks of the week: 5 stocks with consistent score improvement and upside potential of up to 45%

Synopsis

After a short rest, bulls are back on the street, the rally is being led by some banks and other PSU’s. The only thing which appears to be a sign of caution is that the mid-cap index and market breadth in that segment is not as bullish as it used to be when the nifty would be witnessing a similar kind of an up move. For investors who are looking to increase their exposure to stocks, it would be better to focus on fundamentals and if there is any improvement in them which has made the overall score go up in the last one month then have a look at those stocks. 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 the market continues to move from fairly valued to overpriced territory, as an investor it would be better to focus on fundamentals and continue to apply more filters while buying stocks. The reason, small corrections in broader market indices can lead to sharper cuts in individual stock prices but there is a fundamental reason why the sector and the stock is moving upward, there is a higher probability that even if the market witnesses
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