Mahurat Trading: Experts Give Top Stock Ideas For Samvat 2075

• Stick to large-cap stocks instead of mid-cap stocks

• We've had a grand opening this Samvat
• The question here is, will this sustain?
• We are sticking to large-cap stocks instead of mid-cap stocks

• Banking system usually grows two times the economy’s growth rate.
• With just a few private players to cater this kind of growth, a liquidity crunch is bound to happen.
• NBFCs are a good asset franchise, but weak liability franchise.
• With weak NBFCs, opportunity for larger private sector banks is high.
• Large asset base and wider presence gives large private sector banks an edge over others.
• After 10 years, a serious capex cycle in India has begun.
• As India is coming out of a capex slump, construction and infrastructure companies will tend to benefit.
• Market is now adjusting to lower level of fund flows.
• Correction is done for markets and the economy is set to grow.
• Markets have seen deep corrections and valuations and are now very reasonable.
• The real estate sector is still in pain. Customers are happy, but the builder community is in pain.

• Election, crude and rupee are the headwinds in today's market.
• Samavat Year 2075 should be strong due to the strong fundamentals of the Indian economy.
• Would advise you to buy stocks based on valuations.
• Large-cap stocks are available at attractive valuations due to corrections.

• The feeling entering Samvat 2075 is a little somber.
• Not planning into an entire year, only uptil elections.
• Global events have impacted us substantially and domestic markets is saturated with retail participants.
• Looking into new Samvat with the retail investors saturated with investments which have done okay or not okay depending on when they entered the market.
• Challenge for today is that we won’t see the same bullishness in supply of capital, as we did last year.
• Stick to the large-cap stocks
• Use the revival of mid-caps stocks to exit out.
• Do not get tempted by mid-caps stocks, they are a trap.
• Now is the time to take concentrated portfolio bets, maximum 10-12 stocks.
• Elections do wonderfully for few industries and we should stick to those.
• Need to play a lot safer for the next nine months
• Top stock picks: HDFC Bank, HDFC

• It will be risky to buy the Nifty index in the short term

• Nifty trend is positive but don't expect a smooth ride.

• We couldn't have been going into Diwali in a better position, it is a time to buy.
• Don't think we will revisit the record highs between now and next year.
• Would make a ‘contra’ bet on automobiles sector, could land up being the dark horse.
• Buy select stocks for the next one year.
• See value in Pharma sector.

• Now the global cost of equity is going up and even the liquidity scenario in India is slightly tighter. So that means the market will go up if we have EPS growth.
• The biggest stress point for EPS growth has been corporate banks over the last two years. Now that's started to do well.
• The next 2-3 months may be slightly problematic because we have some liquidity crunch but once we have crossed that we will see EPS growth and next year should be better than this one.
• We like the life insurance space because it is at a stage where the next five years will be all about innovation.
• Margins of insurance companies will gradually increase over the years

• Hope rally is likely to extend a bit, but do not invest aggressively in this rally
• One more round of selling is quite possible after this relief move
• On the higher side, 10,700-10,800 is the level to watch out for

• There are pocket of value, but we are not out of the woods yet.
• Bond yields would be a lead indicator of how things are going to pan out.
• Some pockets look oversold and we can gradually looking at adding some positions on those.
• FMCG, corporate-facing banks, capital goods names are the ones to look at.

There may be a lot of variables affecting the stock market, but the prices—far better than they were eighteen months ago—will bring cheer to Indian equities as we enter a new year.

That’s according to Ridham Desai, managing director and India equity strategist at Morgan Stanley, who believes valuations are much more lucrative than they were last year.

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At the start of Samvat 2074, the stock market was rallying, crude oil prices were at “manageable levels” and the economy, in general, was humming. One year down the line, most of these tailwinds changed direction.

Oil prices rose to put a strain on the nation's balance sheet amid an ongoing trade war between the U.S. and China. The financial sector is facing a severe liquidity crunch, and the government is at loggerheads with key institutions.

Volatility is at its peak and stocks have corrected quite a lot. The NSE Nifty 50 Index has declined over 10 percent from its August peak.

The silver lining: stocks have become relatively cheaper than what they were at the start of the year. And investors will look for opportunities to pick on the first day of the next Samvat, or the market new year.

As Samvat 2075 begins, we bring to you commentary from trading and investment experts, as they give ideas for the upcoming year. Stick around for live updates.