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 going above 50 or approaching 60 from below 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 Tata
Technologies Ltd. It's a
global engineering services company providing Product Development and Digital
services. The company was incorporated in 1994.
It has a market capitalization of ₹ 27606 crore,
stock PE= 40.3,
Dividend Yield=1.23%, ROCE=25.8%, ROE=19.9%,
Current stock price is ₹ 681.10.See the chart
below;
Our 2nd pick is Torrent Power
Ltd. The company is a leading power utility company having presence in
generation, distribution and transmission of power. It has presence in Gujrat,
Karnataka, Maharashtra and Uttar Pradesh.
It has a market capitalization of ₹ 65768 crore, Stock PE=23.9%,
Dividend yield=1.46%, ROCE=16.0%, ROE=19.0%,
Current stock price is ₹ 1304.60.See the daily chart below how it has
made a big bearish candle at closing;
Our last pick is Tata Power Ltd. The company is
engaged in generation, distribution and transmission of electricity. It also
manufacturers solar roofs. It has a plan to make 1 lakh EV stations in 2025.
It has a market capitalization of ₹ 123389 crore, Stock PE= 29.9,
Dividend yield= 0.8%, ROCE= 10.8%, ROE= 11%
Current stock price is ₹ 386.05.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.
