Stocks above 20 EMA on Daily Time Frame: Potential Breakout Picks from Nifty 500

 

When a stock closes above its 20 EMA (Exponential Moving Average) on daily time frame, it often signals potential bullish momentum in the near future. In financial markets where uncertainties are inherent, investors tend to rely on growth-focused indicators to identify promising opportunities. And the 20 EMA is one such powerful tool. It helps spot potential trend reversals and confirms upward price strength for the upcoming days on short term basis. 

Based on our analysis, we’ve shortlisted two stocks from the Nifty 500 that have closed above their 𝟮𝟬 𝗘𝗠𝗔 on daily time frame in the previous trading session. This suggests they may be poised for a potential upward move in the coming days on short term basis. 

In our analysis, both these shortlisted stocks show signs of potential short-term upward movement. Notably, the Relative Strength Index (RSI) for each stock is either above 50 or approaching 60, reflecting rising momentum and buyer strength.

This alignment of price action with momentum indicators increases the probability of a near-term bullish move. We also noticed a notable volume spurt in these stocks. 

Our 1st pick is Madhya Bharat Agro Products Ltd. (MBAPL). The company is engaged in manufacturing fertilizer and chemical products. It has two famous brands in fertilizer: 1st one is Annadata for SSP and another one is BHARAT for DAP complexes. 

 

The company has a market capitalization of ₹ 4006 crore, stock PE= 54.0%, Dividend yield=0.11%, ROCE=18.0%, ROE=15.2%, current stock price ₹ 453.50.See the daily chart of MBAPL how today's candle closed above 20 EMA with rising volume and RSI is at 64.

Our 2nd pick is Schneider Electric Infrastructure Ltd. The company is engaged in the business of manufacturing, servicing, distributing technologically advanced products to electric power sectors. It was incorporated in 2011. It has in its portfolio a variety of products such as transformers, switch gears etc. 

 

The company has a market capitalization of ₹ 22863 crore, stock PE= 89.8%, Dividend yield=0.00%, ROCE=39.7%, ROE=65.8%, current stock price is ₹ 955.See the daily chart of Schneider Electric how today's candle has closed above 20 EMA with rising volume and RSI is at 72.

(Stop- Loss in these stocks should be one candle close below 20 EMA line or as per individual risk appetite.)

Disclaimer: The information provided on MoneyWiseMind is for educational and informational purposes only. It is not intended to be financial advice, and you should not rely on it as such. Before making any financial decisions, you should consult a licensed financial advisor.