The journey of investing is filled with cycles—ups and downs that test the patience and conviction of every investor; the one witnessed in the last couple of quarters. During this period, fear overshadowed optimism, and many portfolios saw a significant decline. However, as history has shown time and again, every correction eventually gives way to a new rally. March has brought a fresh wave of positivity to Dalal Street, with the Nifty50 gaining 6% and the broader Nifty500 surging by 7%.
We have developed a strategy for stock selection on a quarterly chart basis.
Market Watchlist: 4 sectors see solid long build ups; 2 Indices with bullish signals The Strategy Criteria
This structured approach helps filter stocks that demonstrate early signs of leadership in a recovering market. The criteria for selecting stocks include:
- Current Quarter’s High > Previous Quarter’s High – This indicates price strength and an ability to break previous resistance levels.
- Current Quarter’s Close > Previous Quarter’s Close – A sign of sustained bullish momentum, ensuring that the stock is not just experiencing a temporary spike.
- Current Quarter’s Volume > Previous Quarter’s Volume – Increased volume suggests stronger investor participation and institutional interest, reinforcing the stock’s movement.
- RSI > 60 – A Relative Strength Index (RSI) above 60 signifies strong momentum and an ongoing uptrend.
Using this systematic approach, we conducted a scan of the Nifty50 stocks and identified five companies that align perfectly with our strategy.
The Five Stocks Potentially Leading the Market Reversal
The following stocks have emerged as potential leaders and strong buying interest as the market rebounds:
- Bajaj Finance – A strong player in the financial sector, Bajaj Finance has consistently delivered robust growth and regained momentum following the correction.
2. Bajaj Finserv – With a diversified business model, Bajaj Finserv continues to demonstrate strength, driven by increasing volumes and a robust quarterly close.
3. Bharti Airtel – As a market leader in the telecom sector, Airtel benefits from stable cash flows and growth in digital services, making it a promising bet.
4. Eicher Motors – The iconic Royal Enfield manufacturer has made a strong comeback,
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