Home / Markets / Stock Markets /  Top picks: 14 stocks to accumulate over next 3-6 months as recommended by HDFC Securities

Markets have kept falling due to a combination of global and local factors and going by the current tailwinds, the end to this phase does not seem to be near in terms of time or value, as per domestic brokerage and research firm HDFC Securities. 

“Cessation of hostilities in Europe and signal from global Central banks that they are done with rate hikes could create the background for bottom formation provided by that time the world is not facing recessionary conditions," the note stated.

HDFC Securities has compiled a list of 14 stocks that can be accumulated over the next 3-6 months by medium risk and high risk investors to benefit out of the current and expected weakness in markets. Nobody can catch a bottom and hence it is necessary to begin this process and achieve an attractive entry point by averaging on the downside.

The high risk stock picks of the brokerage include Bandhan Bank, Coal India, Coromandel International, DLF, Maruti Suzuki, Steel Authority of India (SAIL), and Tech Mahindra. The 7 medium risk stocks include Bharti Airtel, Cipla, ICRA, ITC, Mahindra & Mahindra (M&M), NTPC, and TVS Motors. 

For investors who are fully invested, they can do a thorough review of their asset allocation and equity portfolio and carry out rebalancing by making necessary changes to the asset classes and equity portfolio. For rebalancing equity portfolio, they can wait for some intermittent bounces, the brokerage suggested.

For investors who are not fully invested or who have raised cash in the recent past by booking profits, these times provide an opportunity to gradually raise equity portion of their portfolio. While shortlisting investable stocks one will have to be careful of not having exposure to sectors or stocks that have been derated due to very high valuations or very high financial forecasts that seem difficult to achieve, HDFC Securities added.

The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.

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