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 three 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, all 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 Cochin Shipyard Ltd.
Last closing price is ₹ 1745.70 as on 13th September, 2025.This Company is a
leading shipbuilder of defence, commercial and offshore, doing ship repairing,
marine engineering training and strategic solutions. Incorporated in 1972,
It has a market capitalization of ₹ 45926 crore, stock PE= 54,
Dividend yield=0.56%, ROCE=20.4%ROE=15.8%.
See below the daily chart of Cochin Shipyard Ltd., how it has given a
good closing above 20 EMA line on last Friday with high volume and RSI is also
above 55;
Our 2nd pick is Garden Reach
Shipbuilders & Engineering. Last closed at ₹ 2581.90 on 13th
September, 2025.This Company is a leading shipbuilding company in India, under
the control of Ministry of Defence and supplier of shipbuilding requirements to
the Indian Navy and Coastguard.
The company has a market capitalization of ₹29576 crore, stock PE=52.i,
Dividend yield= 0.54,ROCE=36.6, ROE=27.6.
See the daily chart of GRSE how it has closed above 20 EMA on last
Friday, with a high volume and RSI above 54;
Our third pick is Bhart Dynamics Ltd. Last closed at ₹
1566.50 on 13th September, 2025.This Company is a Government of India
Enterprise, mainly manufacturing and supplying defence products such as guided
missiles, underwater weapons, airborne Products and various other defence
allied products for Indian Armed Forces.
This company has a market capitalization of ₹ 57422 crore, stock PE=102,
Dividend yield= 0.30%, ROCE= 19.7%, ROE=14.4%.
See the daily chart of BDL how it has closed above 20 EMA with a high
volume on last Friday, and RSI is above 55 indicating upside momentum;
(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.
