Volatile yes, but with bullish bias: 5 largecap stocks from different sector with upside potential of up to 31%
Last Thursday, when everything appeared fine, there was a sudden decline in the Nifty, a drop of more than 200 points in less than 5 mins. There was never and never will be, dearth of explanation of every move of the markets. So, the blame this time was put on basket selling and possible attack by Israel on Iran. Explanations aside, volatility is part of the market and will remain. The only two things one should do, look at how the market breadth has panned out during the volatile phase. Second, stocks, which may be volatile in the short term but the companies are good when it comes to fundamentals. During this volatile phase, it was large cap and more particularly index stocks which led the down move. The fact is that the first phase of volatility is always led by large caps as they have high institutional holdings. But over the long term, they tend to outperform and the drawdown is lower as compared to mid and small caps. So, at times large caps might optically appear to be hammered and that may be an opportunity to look at some stocks with a long term perspective.