Retail companies have reported mixed performance, with premium retailers sustaining their growth momentum. However, value retailers continued to face pressure, noted the brokerage. Trent and Westlife Foodworld are the top picks of Axis Securities in the retail space post Q3FY24 results.
While it might be too early to call or to some it might appear to be wish of which bears on the street would have, but the way the market breadth has panned out, there is probability of a selective correction taking place, which is essentially led by the profit booking. At this time if one is looking to increase exposure, it would be better that they should look for stocks where there are some improvements in the business operating matrix that tend to weather the storm better. 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.
Nagaraj Shetti recommends AB Capital and Castrol India as top picks. AB Capital has a positive chart pattern and a target of Rs 196-197. Castrol India is in an uptrend with a target of Rs 220-222. Both stocks have stop losses in place.
There is another side to the much talked about SEBI study, which mentioned that 90 % of the individuals who trade in future and options ( F&O) end up losing money only 10% are able to make profit. What is the common between both these losers and winners? They both brokerage to their stock broker and also pay transaction fees to the stock exchange. So, who is the constant and permanent winner? The stock exchange and the stock broker. Now to the other part which is more important, the turnover of the F&O segment where the compulsive traders are operating will continue to rise. The assumption is based on past trends and the harsh reality that every year a new set of compulsive traders will keep coming to the market and ensure that the cash register keeps ringing at the stock exchange. Also ensuring a healthy bottomline for other companies which form the part ecosystem required from taking a trade to final settlement of that trade.