HOW TO USE STOCK MARKET VOLATILITY
World’s most volatile big stock is rocking Indonesia’s market
Indonesia's stock market faces turmoil as PT Barito Renewables Energy's volatility alarms investors. Foreign capital outflows increase due to uncertainties in fiscal policy and a weak currency, triggering downgrades by major financial institutions.
Look for stocks with less downward volatility and stable earnings prospects: Anand Tandon
A good content pipeline increases the likelihood of hits, and with people coming to the cinema, local F&B sales will also rise. From a tactical perspective, PVR's business outlook should improve significantly over the next 12 months. However, each month must be evaluated separately based on incoming content and audience reactions.
Misjudging market dynamics - why this can be detrimental for investors
In 2021, for instance, euphoria surrounded several newly listed companies. Many investors poured money into these companies based solely on hype, neglecting factors like profitability and growth prospects. This resulted in a correction in 2022, with several companies that previously completed successful IPOs witnessing significant value erosion.
How stock markets have behaved before and after Budgets since 2000
As Dalal Street prepares for the upcoming Budget presentation by Finance Minister Nirmala Sitharaman later this month, a study of market behavior since 2000 reveals that investors tend to reduce their exposure one week before and re-enter one week after Budget day. However, investing on the day before the Budget results in mixed outcomes, with a 54% chance of negative returns one month later, akin to a coin toss.
These midcap stocks with ‘strong buy’ & ‘buy’ recos can rally over 32%, according to analysts
The majority of play in the options segment for the election results fear and greed and hope has been played in the weekly option settlement. Whatever little has been left would be over today as the June series expiry gets over. This is relevant because once this technical volatility is done and dusted the true picture would emerge for many segments of the market including the midcap segment. If one looks at their recent performance in the last few days of volatility, it is clear that there is not much selling pressure. If one goes on by the market breadth, there are indications that bulls might be back in control. Keep an eye on liquidity and the market breadth in the next few sessions as that will determine what happens to mid-cap stocks in the medium term. If the market breadth stays positive then it is very likely that we might see more strength in mid-caps. 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.
Stock picks of the week: 5 stocks with consistent score improvement and upside potential of up to 43%
While the indices might be witnessing correction on intra intra-basis, the broader markets are still very much under the control of the bulls. There is greater likelihood of bullish sentiment continuing, so be bullish but more than anything else in the long term what matters for a stock is earnings and valuation. So be selective, avoid impulsive investing, and keep reviewing one’s portfolio and stay away from penny stocks especially. It is very likely that some of the penny stocks will fly and be distributed amongst retail investors. 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.
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Dalal Street Week Ahead: Guard profits at higher levels, rotate investments in fatigued market
D-Street showed marginal gains in a shortened trading week. However, signs of fatigue and potential correction are emerging. Key resistance levels are identified, and experts recommend caution and profit booking at higher levels.
These midcap stocks with ‘strong buy’ & ‘buy’ recos can rally over 25%, according to analysts
At this point of time, emerging markets are witnessing out flows, but given the fact that there are enough indications that globally a risk on trade is not far given the assumption that the US Fed is likely to change its stand and interest rates are likely to move southward. This “risk on trade” got halted in the Indian market for the first three months of 2024, briefly resumed in April but then again suffered a setback in May. If one goes on by the market breadth, there are indications that it might be getting started once again. Keep an eye on liquidity and the market breadth in the next few sessions as that will determine what happens to mid-cap stocks in the medium term. If the market breadth and nifty stays positive then it is very likely that we might see more strength in mid-caps. 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.
For volatile market conditions: 5 largecap stocks from different sectors with upside potential of up to 29%
Once again on Wednesday, there was a lesson for all who think that bull markets don't see volatility. All of sudden there was a sharp dip in Nifty and other broader market indices, except bank nifty which was trading in green thanks to the fact its largest constituent HDFC bank was trading in green. When valuations are high, volatility never gives notice before coming so one should always be prepared for it. Another point to be watched, if the frequency of the volatile phase increases and if it starts to happen every other fortnight, it might be an indication of profit booking. There is a possibility that as markets inch higher on index levels, there is some sort of rotational profit booking happening. So, it would be better to stay prepared for volatility. Another reason for staying with large caps is that valuations are high in large part of the mid and small caps and they are the ones which might lose more weight if there is any correction due to global reasons.
New bubble? Why are smallcaps and PSU stocks rebounding strongly from June 4 lows? Ashwini Agarwal answers
Ashwini Agarwal says he cannot get himself to agree that the PSU valuations have become quite eye-popping and has room for further upside. But bubbles have their own mind and bubbles can get a lot bigger before they burst. So, there may be a lot of upside.
Consumer staple stocks will continue to underperform: Ridham Desai
When markets start behaving like a fixed deposit, you get a little worried. Every morning you come, it is up 0.5%, that is not how stock markets are supposed to be. So, one day we will arrive and the market will be down 2%.
Playing contra? Why Atul Suri is not bullish on bank and IT stocks now
Atul Suri says the bull market is about those sectors and themes that did not do well for a decade. In this market most people are going to be in positions in private sector banks and largecap IT, but the bull market is happening somewhere else. The market is never about consensus.
If you are a good stock picker, you should be able to double your money every three years: Ramesh Damani
Ramesh Damani says he remains bullish and would remain invested. Damani says that even though he is not young anymore, he still feels young. So, he does not want to raise too much cash and remain fully exposed to Indian equities.
Milind Karmarkar on two sectors that may outperform in Modi 3.0
Power utilities have already done well and possibly they will continue to do well because there is growth in that sector. So, many of these companies are putting in new power plants and things like that. So, there is definitely growth in that sector.
Markets should double in next four-five years: Milind Karmarkar
Maybe we will look at it at that point in time, but right now we miss getting into it early, but as of now we do not want to buy it.
No single theme to drive market; volatility to continue: Milind Karmarkar
So, my belief is that whenever a coalition is at the centre, then you see a decent growth. The clear focus is economics. The clear focus is to do better for the masses and that is what drives the markets, that is what drives the economy as well.
Good time to take some money off the table; wait for next major event: Sanjiv Bhasin
Grasim seems very sweet over there. Our top pick continue to be some of the insurance companies, HDFC Life had a smart comeback. I think that there is a block deal in Mphasis, do not miss out on that because I think Mphasis as a stock on the barometer of a midcap can be an outperformer from here, I would say something closer to 3000.
How to turn panic into profit: Only lesson equity investors should learn to manage stock market volatility
When things get tough, those who have managed to get the basics right— diversification, cost averaging, asset allocation—don’t panic. Investors should have done this and been confident about it. This only comes with simplicity. Embracing simplicity in investment strategy is not just a defensive move, but a proactive approach to building a resilient portfolio.
A confident NDA can propel Nifty towards 26,300: Rupak De of LKP Securities
In the midst of a tumultuous political scenario, the market may find reason to correct back to recent lows or even lower in the medium to long term. Conversely, a confident NDA could propel the Nifty towards 26300 and beyond in the medium to long term.
Stocks to buy after Lok Sabha Elections Results 2024: 5 stocks with up to 23.2% upside potential
While the 4 June crash eroded investor wealth, it may have eased stretched valuations. Experts believe the BJP-NDA government’s economic agenda will largely remain unchanged, though some priorities will be adjusted. Even before the election-induced jolts, the markets had been witnessing volatility. To counter the near-term shocks, invest in companies that have shown stability in the past.
Own midcaps? Do a check & balance exercise to avoid decision of haste: 7 midcaps from different sectors with an upside potential of upto 49%
Every now and then the market goes through phases, where it prefers a certain set of stocks, not based on sector but based on the overall market cap. So, sometimes it is large caps, at other mid-caps. Now this partially happens, due to the flows which are coming to markets. For example, if more flows are coming to mid-cap or multicap schemes there is bound to be out performance in the mid-cap space. Now what it does is that it tends to create a sudden surge in mid-cap. Similarly when there is an outflow like the kind of one which we saw in March this year, midcap stocks tend to decline sharply. Essentially, it is the flows which impact the broader matrix of how midcaps behave. So there are phases not owning a midcap stocks appeared to sin and then there phase, where owning them appears to be sin. But if one focuses on the underlying business and some critical parameters, there is a possibility of getting rid of these phases of anxiety which keep coming to the street and create long term wealth.
Valuations & earnings will take precedence soon says Feroze Azeez of Anand Rathi Wealth
The market's reaction has been quite volatile due to the exit polls. From a trader's perspective, it's been a seesaw. For investors, it’s important to remember that markets typically fall 10% from the peak twice a year.
These midcap stocks with ‘strong buy’ & ‘buy’ recos can rally over 25%, according to analysts
One segment of the markets which was most vulnerable to election results was the mid-cap segment of the market for one simple reason, valuations have been on the higher end. Now that a part of the election anxiety is behind as a new government gets formed. Once again the focus is back on the mid-cap. There are selected stocks from different sectors where analysts are bullish in time where there is rotational trade likely to take place in the next couple of months. 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.
Focus on private banks, pharma, commodities and select IT stocks: Hemang Jani
I think we are undermining what actually happened yesterday. Many stocks were down anywhere from 10% to 25%. So, I think there is not much of a scope for incremental damage except for the sector rotation which may come through.
Nifty could fall another 10%; get ready to buy the dip, says Raamdeo Agrawal
Clearly markets have a tendency to go from one side to other side. But that is how it is. I do not think investors have any problem. The problem is actually for the speculators.
Election cycles and stock market performance: Don’t ignore the long-term
National elections can create market anxiety due to policy uncertainties, impacting market and economy. Understanding election results' relation to equities market performance is crucial for investors' long-term outlook.
How does an investor benefit by using STP?
To start an STP, you need to put in a lump sum amount in a debt scheme (liquid or ultra-short-term fund) and transfer a predefined amount into another scheme, typically an equity fund.
Stocks to buy: Use Altman Z-score to select solid stocks; here are 5 stocks with upside potential of up to 34%
The Altman Z-score is derived from a blend of financial ratios extracted from a company’s balance sheet and income statement. Its formula incorporates variables like working capital, retained earnings, earnings before interest and taxes (EBIT), market value of equity, and total assets. Essentially, this tool amalgamates diverse financial ratios to assess the company’s operational strength, liquidity, solvency, profitability, and leverage. For a comprehensive financial stability evaluation, experts recommend using the Altman Z-score. Read here to find out.
How embracing volatility is the path to wealth creation on Dalal Street
From 1980 to 2023, the Sensex experienced corrections of less than 10% in a year only four times, underscoring the rarity of such events. Intra-year declines of 10-20% are common, with notable corrections of 60% in 2008 and 38% in 2020. Despite these fluctuations, the index yielded positive annual returns three out of four times.
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