The interesting thing in this market market correction is that many stocks are at 52 week lows and many are near 52 week highs. The stocks that did not participate in the Sept-Oct rally are falling as rapidly as stocks that rose 30-50% and now correcting.

Banking stocks, which led the recent rally, are down with profit booking, but once the market stabilizes and starts moving up, they can move up again by 25-30% in the coming months. Among large banks, ICICI Bank looks good with 1 year target 1500, which is 35% upside from current levels. City Union Bank has posted good results, and is our top pick in smaller banks, and it can gain 50% over next 12 months.

Indian real estate stocks have been worst hit by recent fall. DLF should be bought at any price below 275. Even current price of about 310 is a great buy for long term investors with 3-5 year time frame. We expect DLF to be a multibagger among largecaps by 2015. Peninsula Land is a high potential stock among midcap real estate stocks. Attractive buy at current price of 57.

Pharma stocks have shown great strength in recent fall, and have been reporting good profits, so they are all likely to move up fast once the market stabilizes. Stay invested in a few good pharma stocks like: Ranbaxy, Panacea Biotec, RPG Life Sciences, Parabolic Drugs