Momentum Stocks

Momentum Stocks

Momentum Stocks

Momentum Stocks

What are Momentum Stocks?

Momentum Stocks are those whose prices are moving significantly upwards at an accelerated pace. They gain attention from traders due to their rapid appreciation and strong upward trends. The strategy behind investing in momentum stocks is that they tend to attract more buyers, creating a cycle that drives the price higher. Factors such as strong trading volume, positive news, and overall market optimism are often catalysts for such stocks. These are stocks that traders like to watch because they have the potential for quick returns during a positive market trend.

What do Momentum Stocks Tell Us?

Momentum stocks tell us that a stock is experiencing a strong positive trend, fueled by buyer enthusiasm. This kind of price movement indicates that investor confidence is high, and the stock has upward momentum that could persist in the short term. Momentum stocks reflect market sentiment, often tied to positive earnings, favorable industry news, or broader market conditions. While momentum can lead to substantial gains, it is also essential to be cautious, as high momentum may lead to increased volatility if investor sentiment changes suddenly.

Filters Used to Sort the Above Stocks

1. RSI >= 70.00

This filter identifies stocks with a high Relative Strength Index, indicating strong upward momentum. A high RSI suggests that buying pressure is strong, helping pinpoint stocks with growing demand.

2. Money Flow Index (14) >= 70.00

The Money Flow Index helps track buying activity. A value above 70 signals increased demand, showing that traders are buying the stock in high volumes.

3. Commodity Channel Index (14) >= 110.00

This filter indicates a strong trend in the stock's price. A CCI above 110 suggests that the stock is performing well, compared to its average trend.

4. Volume 1 Day > Volume 10D SMA x 2

This filter ensures the current trading volume is significantly higher than the 10-day average, indicating increased interest and suggesting a potential move is gaining traction.

5. Price > EMA 10D

This filter identifies stocks whose prices are above the 10-day Exponential Moving Average, suggesting that the current trend is positive.

6. Price %Change 1 Day > 1.00 %

This filter helps to find stocks that have moved at least 1% in one day, signaling strong short-term price action.

7. Price >= ₹10.00

This filter ensures that the stock is priced at a reasonable level for active trading, making sure it isn't a penny stock.

8. Market Cap >= 500 (Cr)

This filter helps focus on companies with sufficient size and liquidity, reducing risks related to low-volume stocks.

Key Takeaways

1. Spotting Momentum in Stocks

Momentum stocks are defined by their rapid price movement, reflecting strong buying activity. Traders can use this to identify opportunities for short-term gains.

2. High Investor Confidence

Momentum in stocks is often driven by market enthusiasm, supported by factors like positive news, earnings, or overall industry growth.

3. Strong Indicators of Demand

Indicators such as RSI, MFI, and trading volume provide insights into the level of buyer interest. These metrics help identify stocks that are gaining significant attention.

4. Inherent Volatility Risks

While momentum stocks can offer lucrative returns, they come with risks of sharp price reversals. It's important to remain vigilant of market sentiment shifts.

5. Considerations for Different Investment Styles

Momentum stocks are ideal for traders seeking to profit from rapid price movements, taking advantage of short-term trends. Long-term investors might find opportunities if they believe the positive trend reflects sustainable growth, but they should remain cautious of potential reversals and adjust their strategies accordingly.

NSE

Market Cap
2,000 - 18,35,947 Cr

FII Holding
1.00 - 70.38

RSI (14)
55.00

EMA (20)
EMA (50)

EMA (50)
EMA (200)

EMA (200)
Close Price

Volume (Week)
Volume

Nifty 500

Customize

Price
Day Price Change
Change %
Volume
P/E Ratio
Market Cap
Price %Change (Week)
Revenue (Yearly)
FII Holding
RSI (14)
EMA (20)
EMA (50)
EMA (200)
Close Price
Revenue (Quarterly)
Debt to Equity
Volume (Week)
704.20 -3.10 -0.44% 56,23,045 9.19 1,58,946 -1.39% 2,41,204.00 31.39 57.55 692.53 680.96 664.92 704.20 64,836.00 0.52 53,60,437
3,087.20 8.20 0.27% 3,57,791 71.16 1,56,613 0.33% 13,387.50 12.13 60.84 3,040.35 3,015.64 3,010.10 3,087.20 3,839.00 0.05 1,84,009
1,592.80 0.00 0.00% 15,74,526 23.86 1,28,652 1.76% 28,409.50 25.24 66.07 1,538.83 1,518.93 1,514.17 1,592.80 7,095.60 0.02 13,29,354
1,257.20 9.80 0.79% 14,81,336 67.28 1,27,610 4.00% 14,680.40 19.35 59.01 1,225.22 1,223.77 1,222.17 1,257.20 3,726.40 0.29 14,01,400
5,828.00 34.00 0.59% 5,93,439 47.61 1,23,939 1.94% 4,060.10 21.97 70.49 5,609.92 5,368.76 4,709.80 5,828.00 1,201.20 0.00 4,29,165
3,685.30 37.90 1.04% 2,79,865 61.13 1,23,445 0.92% 11,539.40 16.09 62.55 3,610.13 3,498.46 3,352.75 3,685.30 3,091.00 0.50 2,74,861
7,922.50 -4.00 -0.05% 8,43,648 72.42 1,13,971 1.28% 21,994.30 43.49 70.25 7,578.51 7,376.94 7,076.73 7,922.50 5,895.90 0.61 4,88,333
3,916.00 29.70 0.76% 5,58,580 50.59 1,07,728 3.50% 10,837.60 17.50 75.77 3,721.41 3,547.83 3,364.79 3,916.00 3,070.50 0.01 5,34,536
16,893.00 168.00 1.00% 3,04,647 123.18 1,01,149 0.82% 38,860.10 20.55 59.95 16,475.17 16,037.64 15,396.66 16,893.00 12,844.10 0.31 2,31,076
1,859.60 58.20 3.23% 3,15,107 62.68 90,070 7.49% 8,729.70 4.33 60.60 1,784.18 1,780.27 1,588.67 1,859.60 2,310.50 1.46 2,46,226
1,264.60 19.00 1.53% 60,68,853 - 79,482 7.74% 7,624.90 54.87 81.80 1,137.34 1,046.78 892.47 1,264.60 2,159.30 0.01 55,00,405
934.40 -13.15 -1.39% 17,77,906 77.40 71,536 -0.41% 7,849.70 27.17 66.31 901.46 841.42 721.15 934.40 2,197.70 0.22 17,58,264
2,326.40 -22.50 -0.96% 3,74,359 47.79 44,057 -0.19% 14,233.00 8.24 62.83 2,276.24 2,206.56 1,995.69 2,326.40 3,701.00 0.27 3,10,677
465.50 14.75 3.27% 17,07,005 173.32 35,083 -0.51% 4,222.80 10.76 59.82 449.48 438.03 390.52 465.50 1,314.00 2.53 9,02,453
14,570.00 -28.00 -0.19% 21,701 57.00 27,689 4.52% 3,939.20 5.73 68.32 13,852.89 13,503.98 13,250.56 14,570.00 1,042.20 0.00 10,949
521.85 4.40 0.85% 6,20,900 23.55 22,357 3.33% 3,108.90 5.58 65.87 503.97 486.64 450.76 521.85 851.30 2.80 5,00,797
1,398.60 2.80 0.20% 2,61,810 115.03 22,296 3.87% 5,756.10 12.13 69.94 1,311.28 1,264.04 1,127.65 1,398.60 1,463.60 3.13 2,33,572
1,178.00 7.60 0.65% 1,64,487 26.72 20,807 0.08% 31,967.80 12.66 55.17 1,162.09 1,113.02 948.67 1,178.00 8,813.40 0.30 1,32,405
193.02 3.29 1.73% 2,16,36,789 16.44 18,137 3.60% 4,452.80 17.69 71.83 174.32 161.78 137.58 193.02 1,104.30 1.52 1,04,27,720
1,545.00 34.10 2.26% 5,64,599 40.27 17,572 7.26% 2,268.66 8.97 60.05 1,464.09 1,449.58 1,401.79 1,545.00 599.40 0.00 2,56,539
2,168.10 -43.00 -1.94% 1,72,520 29.72 16,807 0.76% 1,937.47 6.17 57.05 2,107.67 2,080.51 2,061.66 2,168.10 533.40 0.00 1,01,202
238.61 15.42 6.91% 1,92,46,380 20.20 14,937 17.48% 5,375.73 6.51 80.31 204.99 196.50 191.86 238.61 1,348.80 0.04 49,82,925
169.45 3.11 1.87% 2,08,05,271 61.05 13,178 10.77% 1,286.08 21.33 72.83 151.85 147.75 139.17 169.45 317.40 2.48 86,02,471
376.50 -14.45 -3.70% 73,03,953 - 12,115 1.50% 4,357.30 2.97 57.68 367.34 353.98 339.49 376.50 1,033.80 0.38 38,93,235
377.00 8.85 2.40% 7,40,640 27.77 11,219 2.78% 3,513.50 14.29 59.52 363.38 355.89 351.92 377.00 907.20 0.15 5,17,464