August 2024 Buy-Sell Guide India Nifty Top 29 Stocks

Abstract

We study recent monthly data to help long-term investors buy or sell from the top 29 Nifty Fifty Stock Index components. The recommendations are based on six stock-picking algorithms and their average ranks. Since the version of the “omega” stock-picking algorithm in the literature uses weights that distort the actual gain-to-pain ratio faced by investors, we use modified weights. We use data for 29 stocks using the recent 345 months (28.75 years) of monthly closing prices ending in August 2024. Our buysell recommendations also use newer “pandemic proof” out-of sample portfolio performance comparisons from the R package ‘generalCorr.’ We report twelve sets of ranks for both out-of sample and in-sample versions of the six algorithms. Averaging the six out-of-sample ranks yields the top and bottom k stocks. For example, k = 2 suggests buying BAJFINANCE and LT while selling BRITANNIA and MARUTI.

Keywords: Stock-Picking, Portfolio Choice, Deciles, Pandemic-Proofing, Omega Gain to Pain Ratio, Stochastic Dominancea

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