12 bluechip stocks within 5% of their 52-week highs; should you chase them now?

The sharp rally in Indian equities over the past month may have left investors wondering whether they have missed the opportunity to participate in the market's latest up move. With the benchmark Nifty 50 surging nearly 13% over the past month, several bluechip stocks have moved closer to their respective 52-week highs, raising the question of whether investors should enter at current levels or wait for a correction.

Data from ACE Equities shows that 12 stocks from the Nifty 50 universe are trading within 5% of their respective 52-week highs. Among them, JSW Steel is just 1% away from its 52-week high, while ICICI Bank, Dr Reddy's Laboratories, Eternal and Bharti Airtel are within 3%.

The list also includes Tech Mahindra, Titan Company and Adani Ports, which are 4% away from their respective 52-week highs, as well as Larsen & Toubro, InterGlobe Aviation, Trent and Apollo Hospitals, which are within 5%.


The recent momentum has been particularly strong in some of these stocks. Tech Mahindra has gained 18.12% over the past month, followed by InterGlobe Aviation (17.21%), Bharti Airtel (16.84%), ICICI Bank (15.99%), JSW Steel (15.86%) and Dr Reddy's Laboratories (15.04%).

Source: ACE Equities

However, market experts believe investors should resist the temptation to chase stocks simply because they are approaching record levels. Instead, earnings visibility, valuations and business fundamentals should determine investment decisions, with buying on dips emerging as the preferred strategy.

Don't chase the rally indiscriminately

Vinit Bolinjkar, Head of Research at Ventura, said the Nifty 50's nearly 13% rally over the past month reflects a strong recovery in investor sentiment. However, with several bluechip stocks approaching their 52-week highs, investors need to become increasingly selective.

According to him, a stock trading close to a 52-week high is not necessarily expensive. The more important consideration is whether earnings growth, valuations and future business prospects justify the prevailing market price.

"We believe investors should adopt a staggered accumulation strategy, with fresh investments spread across market corrections rather than deploying capital aggressively at current levels," Bolinjkar said.

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Among the stocks trading near their highs, Bolinjkar prefers ICICI Bank, Larsen & Toubro and Adani Ports.

ICICI Bank offers a relatively attractive risk-reward proposition, supported by healthy credit growth, strong asset quality and consistent profitability. The bank reported 20% year-on-year profit growth in Q2FY27, while its net non-performing assets improved to 0.30%, reinforcing earnings visibility.

Larsen & Toubro remains well-positioned to benefit from India's infrastructure and capital expenditure cycle. Its record order book of approximately Rs 8.54 lakh crore provides strong revenue visibility. However, execution margins and geopolitical risks remain key monitorables.

Adani Ports is another preferred pick, offering exposure to structural growth in India's logistics and maritime infrastructure. Its Q2FY27 EBITDA increased 23% year-on-year, supported by expanding domestic and international operations. The company has also raised its FY27 earnings guidance.

Bharti Airtel attractive, but wait for corrections

Bolinjkar is also constructive on Bharti Airtel's long-term prospects, citing improving average revenue per user (ARPU), premiumisation and strengthening cash flows.

However, he would prefer accumulating the stock during market corrections rather than chasing its recent gains.

The telecom major has gained 16.84% over the past month and is just 3% away from its 52-week high, according to ACE Equities data.

Bolinjkar advised greater caution towards aggressively buying JSW Steel, Eternal, Titan Company and Trent following their recent rallies, given their respective commodity-cycle and valuation sensitivities.

His broader preference remains for earnings-backed opportunities rather than momentum-driven buying.

Buy on dips remains the preferred strategy

Kranthi Bathini, Equity Strategist at WealthMills Securities, believes the improvement in market momentum is creating opportunities for investors with a medium- to long-term investment horizon.

However, he does not recommend chasing stocks at elevated levels.

"As the market momentum has turned positive, there will be opportunities in the market here and there. This is the time when investors should start picking stocks with a medium- to long-term perspective," Bathini said.

According to him, buying on dips remains the right strategy for investors looking to build positions.

Bathini's preferred stocks include Bharti Airtel, ICICI Bank, Titan Company and Larsen & Toubro, which he believes investors can consider accumulating during corrections.

Data compiled by: Ritesh Presswala

Disclosure: This article has been written by Kumar Gaurav, who is not a Sebi-registered Research Analyst or an Investment Adviser. Gaurav and their ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective Sebi-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclaimers here