Stock picks of the week: 6 stocks with consistent score improvement and upside potential of up to 41 %
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.
If one looks at the sectoral weights on nifty and sensex, it is the IT and financial sector which dominate it. So while financials are taking some rest, it was the turn of the IT sector to push. Whether this was just a short covering led up move or the street is realizing that worst is probably over the IT sector stocks would be clear in the next couple of sessions. As an investor, be careful in making a distinction between narrative and real
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