The Outperformers

January 27, 2022

We debuted a new scan recently- The Outperformers.

The Outperformers is our newest scan that pinpoints the very best stocks in the market. It’s the fastest, easiest way to find quality names that are primed for major moves.

The goal is that as the market rally progresses, the sector rotation within the market will reflect in this scan. So while our Top/Down Analysis helps us with the broader view of the market, this Bottom/Up scan makes sure that we catch the slightest change in sentiment.

Here is the list of The Outperformers 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 our last post, we looked at Grasim.

Let's take a look at this week's scan selection.

Well, the market is messy again. So that 'Aha' moment of market clarity has left us again.

But what has happened is, that as in any market scenario, certain stocks are outperforming the rest. As evidenced by the title of this scan.

So here we have today, State Bank of India, because PSU banks are at it again! And no, they're not underperforming, but rather outperforming the market.

As can be seen on the daily chart below, the price is taking another shot at its breakout thesis. With this move, the sideways consolidation that the stock has been experiencing may come to an end.

The indicator too is displaying signs of strength. And most importantly, the relative strength chart is practically screaming strength!

With all these parameters favouring a bullish trend, we believe a bullish thesis can be made here.

We are bullish above the risk management level of 511, with a target close to 735. But as before, if the price moves below 511, we are not interested. We are very clear about that.