The stock market opened higher on Tuesday tracking Asian markets which slipped and the US dollar advanced as a deluge of US government debt this week and the specter of inflation and a higher fiscal deficit drove US borrowing costs near four-year highs. At 10:05 am, the Sensex was trading at 34,555, up 105 points, while the broader Nifty50 was ruling at 10,591, up 7 points. With a volatile trend seen in stock market in last few weeks, Religare Securities suggests focusing on March quarter earnings for market cues.  "Indications are mixed at present and thus we suggest focusing on earnings for cues," the brokerage said. 

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"We feel the prevailing tussle would end next week and meanwhile traders should prefer hedged positions. Among the sectoral pack, IT, FMCG and metal look strong and we may see fresh surge in media stocks. On the other hand, PSU banks and pharma are still trading reeling under pressure so plan accordingly," it added. 

Here are six stocks on which brokerages have turned quite bullish:

1. Kotak Securities on Dilip Buildcon: Dilip Buildcon is uniquely positioned to leverage its process-driven approach in a growing road construction business opportunity and eventually diversify into other EPC businesses. We expect strong business gains and financial deleveraging to drive 26%/27%/41% CAGR in revenues/EBITDA/PBT over FY2018-22E. We initiate coverage with a BUY rating and DCF-based one-year forward target price of Rs 1,365. We use 13.5% WACC, higher than that of peers, to incorporate the risk of financial volatility from DBL’s higher fixed cost structure.

2. Edelweiss Securities on Ashok Leyland: Robust demand outlook on Ashok Leyland will be driven by ban on overloading, replacement demand, GST and driver shortage. We maintain ‘BUY/SO’ with SOTP-based target price of Rs 175 (11x FY20E EV/EBIDT and INR8 for finance business). At current market price, the stock trades at 18.5x FY20E PER.
 
3. CLSA on HDFC Bank:  We see a 21 per cent CAGR in profit over FY18-21 led by topline growth and realisation of cost efficiencies; the proposed capital raising of Rs240bn can lift growth/scope to invest in branches. We retain BUY with a target price of Rs 2,470 (earlier Rs 2,340) based on 4.4x Mar-20CL adjusted PB and the value of subsidiaries.

4. Macquarie on Indiabulls Housing Finance: Loan growth is much ahead of peers, and is led by home loans and corporate loans. Rate hikes, and increased securitisation will aid margins. We expect strong loan growth, steady spreads and high return ratios for for Indiabulls Housing Finance. We maintain outperform rating with a target price of Rs 1,599.

5. HSBC on Indian Cinema: Q4FY18 registered solid 40%+ growth in box office collections, and delay in achieving targeted screens roll-out may affect earnings. We expect 15 per cent earnings growth in FY19 as 2018 movie pipeline looks robust. We maintain Buy on PVR with target price of Rs 1,662. We have a buy rating on Inox too with target price of Rs 359.