Hidden Multibagger Stocks by Devendra (RA: INH000026488)
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Disclaimer: I am a SEBI Registered Research Analyst (RA: INH000026488). All stocks, market updates, and investment-related information shared in this channel are strictly for educational and informational purposes only.
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FII buying and selling is continuing intermittently, as I had predicted at the beginning of this month. Today, there was once again strong selling in IT sector stocks due to fears around AI. The IT sector has already been underperforming since 2022, and the market continues to punish this space.
We have not selected any IT stocks during this bear phase because I was concerned that the US could slip into a recession, which would negatively impact the IT sector.
Today, the Nifty 50 fell by 1.5%, while the Smallcap 250 declined by only 0.5%. If you look at historical trends, whenever the Nifty 50 falls by 1%, smallcaps usually fall by 2–3%. However, this time the situation is different. The Smallcap 250 has already undergone a significant correction, so the downside is now limited, whereas the Nifty 50 correction is not yet complete and further downside is possible.
The Nifty 50 was kept near all-time highs over the past six months, which prevented a proper correction. Now, whenever there is selling pressure in the Nifty 50, some minor pressure is also seen in the Smallcap 250.
As I mentioned earlier, the market is likely to remain sideways with some volatility until Q4 earnings. FII —intermittent buying and selling—is contributing to this volatility and range-bound movement.
However, this is a positive sign for the market. FIIs are not buying aggressively because Nifty 50 valuations are still high. If Q4 earnings improve, we could see strong FII buying. There is no major concern in the Smallcap 250 index, which has already corrected well, and accumulation is visible in many emerging sector stocks.
This clearly shows why correction is very important during a bear phase. Many people believe the market should not fall, but without correction, a sustainable bull run cannot begin. A bull run starts only after proper correction, when valuations become attractive and FIIs begin to invest aggressively. Otherwise, they have other emerging markets like Brazil and South Korea as alternatives.
This is why I have repeatedly said that Trump or tariff-related news has nothing to do with our market’s underperformance or outperformance. The market has already moved past such news and is now focused mainly on earnings and valuations.
Going forward, keep these points in mind to avoid getting trapped during a bear market. Social media can often be misleading, where retail investors are made to wait for a bull run based on speculative news. Months pass, frustration builds, and still no bull run occurs.
Keep in mind , when bull market ends and a bear market begins, it typically lasts 1.5 to 2 years. During this period, there is no real bull run—only intermittent hopes driven by news like trade deals or tariff changes.
So be cautious and avoid getting trapped in such prolonged and painful bear phases by relying on misleading narratives.
💥The Importance of Exit Strategy in Bull Runs💥
Many people waste their time trading during a bull market, thinking they are making good profits. However, they fail to understand that every bull market is followed by a bear market. The real question is—can you make similar profits during a bear phase? Do you have a plan to handle a long and painful bear market?
Around 90% of people are unaware of these realities. Some even consider quitting their jobs after making quick profits during a bull run. But trading is often more like gambling . Even if you make profits in a bull phase, there is a high probability of losing more during the bear phase—especially in F&O, where people can lose their entire capital.
This is why you should use a bull market as opportunity to create wealth, rather than being satisfied with small trading gains of 10–15%. A bull market offers a golden opportunity to build wealth if you invest in strong, high-growth companies (potential multibaggers) with proper planning and a clear exit strategy.
To create wealth in a bull market, you must build a strong portfolio during the bear phase. Ideally, your portfolio should not have more than 30–35 stocks, and capital allocation plays a crucial role. Many retail investors keep adding too many stocks during a bull market, which reduces their ability to generate meaningful wealth. Even if one stock becomes a multibagger, the returns will be insignificant if the investment amount is too small.
In reality, just 5–6 multibagger stocks are enough to generate substantial wealth—provided you allocate sufficient capital to them. More stocks do not mean more profit; they often lead to over-diversification and lower returns.
Before investing in any stock, you must clearly understand why you are investing—what is the company’s growth potential, what is the business and whether it belongs to an emerging sector. This clarity builds conviction.
Also remember, not every stock will become a multibagger. But identifying even a few strong winners is enough to create wealth over time.
As the bull run approaches its end, you should have the courage to exit and protect your capital for the next bear cycle. In a bear market, the focus should not be on aggressive profit-making, but on capital preservation. Entering a bear phase with unrealistic expectations can lead to repeated mistakes and heavy losses.
After exiting, you can gradually start allocating capital into emerging sectors during the bear phase, keeping in mind that such phases can last 1.5 to 2 years. Investment should be slow and well-planned.
Those who do not understand the difference between bull and bear markets cannot follow this strategy. This is why many investors fail to generate meaningful returns even after holding stocks for the long term.
Your mindset in a bear market should be defensive. If you enter with high expectations of quick profits, there is a strong chance you will lose capital. Protect first—then grow.
If you have capital during a bear phase, you can use it to create significant wealth. However, if you fail to exit at the end of a bull market and your entire capital gets stuck during the bear phase, you will be left helpless. You won’t have the funds to invest in new and emerging sector stocks.
As a result, the next bull market may go to waste, as your focus will only be on recovering previous losses instead of creating new wealth.
This is why capital rotation between bull and bear phases is extremely important. This strategy is effective only for investors who truly understand market cycles and know how to act accordingly.💥
"Acutaas Chemicals" a multibagger stock, is gradually forming higher highs even in a weak market.🚀
" Axiscades Technologies " Multibagger stock continue to outperform 🚀
" Sakar Healthcare" which has posted outstanding Q3 results, is outperforming in this weak market.🚀
Please study the stocks that I shared in our channel which have delivered strong results.💥💥
As I mentioned earlier, the market is likely to remain sideways until the Q4 results are announced, with some volatility in between. If you follow our channel, you don’t need to check chart patterns daily to understand where the market is heading, because we guide you throughout the bear phase—from start to end—based on FII activity, retail investor psychology, global macroeconomic data, valuations, and earnings trends.
The tendency of a bear phase is to push investors to extreme frustration, where they start thinking about exiting the market. This is normal in every bear phase, especially in the final stage, which is often the most frustrating and exhausting.
However, those who understand the bear market cycle can navigate this painful phase more effectively. This is the time when you can build a strong portfolio, which can generate significant profits in the next bull run.
We are currently in the last stage of the bear phase. FIIs are actively buying and selling, waiting for Q4 earnings. If earnings improve, they are likely to invest aggressively. The delay in the bull run is mainly due to high SIP inflows, which are preventing the market from undergoing a proper correction.💥
"Stallion India’s" R32 plant is expected to be commissioned by October 2026. This will be followed by the proposed HFO manufacturing facility. The company has already acquired land for this project.
💥Top Indian Stocks Benefiting from the US AI Data Center Growth💥
Some Indian companies can act as proxy plays on the US AI data center boom, as they supply critical components such as power equipment, connectivity solutions, engineering systems, and cooling technologies used in global data center infrastructure.
The following are some of the key proxy players:
👉MTAR Technologies
👉Sterlite Technologies
👉Azad Engineering
👉TD Power Systems
👉Aeroflex Industries
👉Cummins India
👉KRN Heat Exchanger
👉GE Vernova
These companies are not direct data center operators but are part of the global supply chain ecosystem supporting AI-driven infrastructure growth.🚀
FII buying and selling is continuing, just as I had predicted. This appears to be an accumulation phase, where the market moves in a range while smart money builds positions.
The US market has reached a stage of stagnation, and capital is now starting to flow into emerging markets. Among these, Brazil is currently attracting strong FII inflows, and its market is heading toward a bull run, following South Korea. Gradually, emerging markets are beginning to outperform one by one.
I believe India could be next. The Indian market has been underperforming for more than a year, mainly due to high valuations. However, if earnings improve, we could soon see strong FII inflows returning to India. At present, FIIs are selectively accumulating old-economy sectors such as automobiles, construction, capital goods, pharmaceuticals, healthcare, metals, power, and banking.
If the Indian market had corrected more meaningfully, FIIs would have already returned in a big way. However, strong SIP inflows have kept valuations elevated. This is why I keep emphasizing that FIIs are not staying away because of factors like Trump tariffs or government issues, but primarily due to expensive valuations driven by continuous domestic inflows.
FIIs are allocating capital to markets like Brazil and South Korea because valuations there are relatively cheaper compared to India.
This is why i am worried for the next bear phase where SIP inflows can cross ₹40,000 crore per month and the market does not correct over a long period, it could lead to an extended bear phase in the future.
One important point to understand: 2026 is likely to be a stock-picker’s market. You cannot rely only on technical chart anymore. Investors need to understand business fundamentals, future growth potential, management guidance, and sector tailwinds before investing.
The intermittent buying and selling by FIIs suggests that the market may be in the final stage of bottom formation. You might have noticed that when FIIs buy, DIIs tend to sell—this indicates that FIIs are accumulating large-cap stocks from DIIs, while DIIs redeploy that capital into mid-cap and small-cap stocks.
Look at the small-cap 250 index. The market is currently moving within a range—this is known as an accumulation phase, where the index trades in a narrow band without any major directional move.
At present, the market is waiting for Q4 earnings. So, over the next two months, you are likely to see continued range-bound movement. A breakout in the small-cap 250 index can be expected once strong Q4 earnings from small-cap companies start coming in.
I don’t track the Nifty 50, as it appears to be manupulated by selective buying in a few stocks. This kind of movement has been ongoing for the last 6–7 months. Without a meaningful correction in large-cap indices, it may be difficult to see strong returns in 2026.
On the other hand, the small-cap segment has already undergone a correction over the past six months and seems to have formed a bottom. The small-cap 250 index may remain range-bound at current levels for the next couple of months, with a potential breakout after Q4 earnings.
The market has already discounted all positive and negative news related to Trump, so don’t expect any major moves based on that. Trump chapter is effectively closed for the market. Also, keep in mind that the market rarely reacts to the same reason repeatedly.💥
The market is likely to remain sideways until the Q4 results are announced. “sideways,” mean the market will move within a narrow range without any significant upward or downward trend.
Currently, the market is waiting for earnings growth, which is expected to come from Q4 results.
It has largely ignored news related to Donald Trump and tariff developments, as these factors are already priced in. So, there is no need to get excited about such news.
The market is focused only on improvement in earnings. Without strong earnings growth, it is unlikely to respond positively. As mentioned earlier at the beginning of the month, the market is expected to remain sideways until Q4 results are out.
Investors should avoid reacting to short-term positive news that creates excitement on social media like Trump tarrif , trade deal etc.
Understanding FII psychology helps in forming a clear 2–3 month market outlook. There is no need to track technical charts every day.
Keep an eye on the Nifty Smallcap 250, which is currently range-bound. Nifty 50 index is being manipulated over the past six months. You will not get a clear idea about overall market movement by looking only at the Nifty 50.🚀
