Fireworks on D-St! Top 10 stocks to buy which could give up to 50% return till next Diwali 2018

The S&P BSE Sensex gained nearly 4,000 points or 13 percent since last Diwali and expectations are that the rally could take the index to fresh highs in 2017 itself.

The year 2017 has been an eventful year for markets as benchmark indices scaled news highs with Sensex rallying over Mount 32K and Nifty hitting a record high of 10,178.

There was plenty of stock specific action with some mid and smallcap stocks rose up to 800 percent in the last one year which includes companies like Indiabulls Ventures which rose 800 percent, followed by HEG which was up 538 percent, and Graphite India which gained 513 percent.

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The S&P BSE Sensex gained nearly 4,000 points or 13 percent since last Diwali and expectations are that the rally could take the index to fresh highs in 2017 itself.

Almost every sector has given good returns leaving export-oriented sectors but investors might now have to tweak their strategy and focus more on stocks which could lead next leg of the rally.

For Samvat 2074, analyst advises investors to carefully select picks which could create wealth and at the same time provide stability at the time of volatility. The portfolio should be well balanced and provides superior returns, without any unnecessary risk.

The market will remain stock specific and investors should tone down their expectations from the S&P BSE Sensex or Nifty for the next 6 months at least. Amid global and domestic headwinds, benchmark indices are unlikely to repeat performance of H1.

"Given the return for the first half of the year, investors might want to tone down their expectations for the remaining year. Definitely, the market is trading ahead of its fundamentals in case of few sectors, and waiting for signals of earnings improvement from the corporate sector," Arvind Vinjamoori of Karvy Stock Broking told Moneycontrol.

"There is rather a bleak chance that earnings could revive in next half of the year as we are still in early stage of capex cycle and capacity head-rooms are still at significant levels. We may witness a range bound trading for Nifty in the range of 9,700-10,100 in the next 6 months," he said.

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