When a stock closes above its 20 EMA (Exponential Moving Average) on weekly 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 to medium term basis.
As per our analysis, all 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 50/60, 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 first
pick is Swan Energy Ltd. The company is engaged in manufacturing and marketing of cotton and
textile products in India. Incorporated in 1909 as Swan Mills Limited, has
diversified in various sectors like energy, real estate, construction, warehousing
distribution of chemical and petroleum products.
The
company has a market capitalization of ₹ 14889 crore
Stock PE=
23.4, Dividend yield=0.02%, ROCE=14.3%, ROE=11.1%,
Current
stock price is ₹ 475.30.See the weekly chart below;
Our
second pick is Dhani Services Ltd. It is mainly engaged in the
business of providing technology based healthcare and finance subscription
services through it "Dhani" App. It is also engaged in varieties
of activities like stock broking, reconstruction business, daily needs
stores, asset reconstruction etc.
The
company has a market capitalization of ₹ 3944 crore,
Stock PE=
116, Dividend yield=0.00, ROCE=1.33%, ROE=-1.75%,
Current
stock price is ₹ 65.23.See the chart below;
Our third
pick is Cigniti Technologies Ltd. The company was incorporated in 1998 in
Hyderabad, India. It is engaged in providing skilled software and technology
services to the clients in various industrial sectors.
The
company has a market capitalization of ₹ 4502 crore,
Stock
PE=17.6, Dividend yield=0.18%, ROCE=34.2%, ROE=26.2%,
Current
stock price is ₹ 1643.20.See the chart below;
(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.
