Fallen angels! Emkay identifies 5 stocks that may have overcorrected
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Many stocks recently witnessed an over-correction, as high as 15%, when the Nifty index corrected 8% as of October 24 from it's all-time high of 26,277.35 made on September 24. The index is now trading below the 24,300 level and also below most of its significant exponential moving averages (EMAs). Domestic brokerage firm Emkay Global in a report stated that 64% of the stocks in their coverage universe have fallen more than 15% from their 52-week high, which may now provide an attractive opportunity if they buy this dip. However, it is to be noted that the negative momentum may not turn around immediately in these stocks, but they are all attractive from a 1-year perspective. Below is the list of the same: IndusInd Bank The MFI pain is temporary and this is not a classical down-cycle that wipes out large parts of the book. The bank’s decision to sacrifice growth rather than compromise on credit standards is an overlooked positive. The...