The All Star Momentum Scan

JC Parets
February 18, 2022

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

All Star Momentum is a brand new scan that guides us towards 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 outperform the market.

While we go through our lists of sectors and stocks on a weekly basis, we thought of launching a product that would highlight the strongest performers in our universe. These are the ones 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 the chart to enlarge the view.

In order to identify the high momentum stocks, we scanned the Nifty 500 index on the basis of relative strength. Then we 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.

This week, RHI Magnesita India has been the strongest performer in our list. This was one of the Trade Ideas shared in our Quarterly Playbook as well.

The stock has picked up momentum and is quickly racing towards 557. We are bullish going forward only if the breakout comes through and holds its ground above the level of 557. The momentum too is in bullish territory.
In a market full of mixed signals, these clear bullish signs from a stock are important to note. This is basically relative strength at play. Since we have both absolute and relative strength coming through in this stock, we're keeping an eye on this one to see how its unfolds.
We are bullish above the risk management level of 557, with a target near 835.

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

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