The All Star Momentum Scan

JC Parets
June 2, 2021

We debuted a new scan recently which goes by the name- All Star Momentum.

All Star Momentum is a brand new scan that pinpoints the very best stocks in the market. This time around, we have incorporated our stock universe of Nifty 500 as the base. Among the 500 stocks that we follow, this scan will pump out names that are most likely to generate great returns.

While we go through our lists of sectors and stocks on a weekly basis, we thought of launching a product that would highlight the names that are the strongest performers in our universe and those that are primed for an explosive move.

Just like The Outperformers scan, this is a list of stocks belonging to the sectors that display relative strength in the market at any given point in time. Since sector rotation is the lifeblood of a bull market, we will be ahead of the curve before the gears keep shifting.

Here is the list of The All Star Momentum Scan that we sorted by way of relative strength. These stocks have been selected on the basis of inter- and intra- sectoral performances. So while these belong to the sectors that are outperforming the market, these stocks are also outperforming their peers within the same sector.

Click on chart to enlarge view.

In order to identify the high momentum stocks, we scanned the Nifty 500 index on the basis of relative strength and sorted them on the basis of the distance between the current market price and their respective all-time highs.

This is a bottom-up scan that keeps us on our toes. Any new development in price and sector rotation reflects in this list. Sometimes with so much going on one may overlook an interesting story developing in a specific sector. This scan helps us remain up-to-date with all that's happening in the market.

To make sure that we're getting the best out of the scan we look for outperforming stocks within the outperforming sectors!

Quite often, we see the same names coming up in different scans, but that is something we love to see! If different processes and scans are directing us towards the same name, that just means we should not turn away from the inherent strength in that particular stock.

Let's take a look at some of these ideas.

Among the sectors that we're tracking closely, Nifty Energy is picking up pace after a minor halt. While Reliance has seen quite a move in the last 2-3 trading sessions, there are other stocks from the same sector that are popping up on our scans.

Aegis Logistics is one such name that has made its way into several lists of strong stocks. The price has broken out of its resistance level of 365. The indicator hasn't breached the 40-mark during its sideways and corrective moves, signaling inherent strength. With the Energy sector moving higher, this could be just the tail wind that Aegis needs.

On a relative basis too, the stock has breached multiple levels of resistance and is trading near early 2018 levels.

We are bullish above the risk management level of 365 with a target near 525.

This bottom-up scan helps us winnow down to the strongest stocks among as many as 500 scrip codes! So while we continue with our top-down analysis for a broader market perspective, an additional layer of the bottom-up scan adds to our process making sure that we're not missing the names that are experiencing the strongest moves.

Thanks for reading and please let us know if you have any questions.

Allstarcharts Team

Filed Under: