Midcap 100 portfolio

1

NEED SUGGESTIONS

I am making a portfolio of 20 stock from MIDCAP 100 stock.
As I am buying only 52 week high stocks nd filter the stock with last 1 years ROI.

How to select the stock from that list, If there are many stock.

Need suggestions.

2

Check with FIB-RETRACEMENT tool, how much that particular stock has retraced after a straight bull run on DAILY timeframe!
You can also check NIFTINESS - Youtube Channel to understand Banknifty Movements.

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Can try below link. if planning for long term you need study fundamental analysis.

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IMO buying a basket of 20 stocks is too many and very difficult to track them. Ideally a portfolio of 10 stocks max. is better. What’s your rationale to buy the stocks which are at 52 week high? Not sure what you plan to buy are really attractive in terms of risk/reward. Not sure if you are a short/medium/long term investor?

Make no mistake, markets are at all time high, so you need to study the fundamentals of each stock thoroughly before making an investment decision.

You need to consider several factors while short listing a company for the investment.
Some of the factors which I usually consider when I invest are…

  1. Sector tailwinds / Favorable govt policies / Sectors with immense growth potential
  2. Market leader / Monopoly / Duopoly / Very few players / Entry barriers in the sector
  3. Debt free company / Very negligible debt on the books
  4. Last 3 to 5 years ROE >20%
  5. Last 3 to 5 years ROCE >20%
  6. Growing top line, bottom line, EPS Y-o-Y basis
  7. Stable / rising profit margins Y-o-Y basis
  8. Cash flows are consistently positive
  9. Promoter holding >65% and Promoters are not selling in open market
  10. Promoters/Management is hungry for growth through expansion, as evident through regular investor presentations or investor con calls.
  11. Paying regular dividends
  12. FII/DII/HNIs holding the stock would be icing on the cake

Shortlist the stocks based on above 12 factors and then see if the stock price is attractive to buy. If not, then wait for the correction / dips to buy.

All the best.

Disc: I am an ordinary individual investor. Above views are personal. Do your home work and take informed decisions.

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5

Hey Kuldeep,
My 2 cents dont restrict yourself towards Just Midcap there will be some microcaps with Great oppostunity giving more than 30% eps CAGR
And there’ll be some deep Value large caps at some point that’ll be banger see Larsen
So dont restrict yourself by criteria of Size
Just make sure you invest in what you understand rather than what you should be buying just on the basis of numbers of ROE And PE, Etc.

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