Synopsis
If the current correction and bearish phase continue for a few more weeks, a kind of fatigue could set in on the street. At this juncture, it is important to take into account the fact that the market has its cycles, but the fundamentals of an industry have different cycles. Focus on the fundamentals because, in some cases, geopolitical events will have a fundamental impact on some sectors. Our selected stocks for today depict a strong upward trajectory in their overall average score which is based on five key pillars: 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.
The way the markets are shaping up in the context of the Q3 earnings season and geopolitical developments – both at the level of the Nifty and Sensex, and broader market breadth – it is clear things will remain choppy. There are two indications that have emerged in the last few days. The first is an element of over-pessimism in parts of the market. The strong upward movement which many IT stocks witnessed on a day when they announced that the
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