To identify tomorrow’s rally stocks in the Indian stock market (NSE), you can use various methods and tools for stock screening and analysis. Here are some steps you can take to find potential rally stocks:
1. Use Stock Screening Tools
- Tickertape: Set filters for high trading volumes, positive price movements, and favorable financial ratios.
- Screener.in: Customize filters to identify stocks with strong recent performance and positive financial metrics.
- Chartink: Screen for technical indicators like breakout patterns, high relative strength, and moving average crossovers.
2. Monitor Market News
- Economic Times, Moneycontrol, Livemint: Check for news on earnings reports, major announcements, or significant market events that might influence stock prices.
3. Analyze Technical Indicators
- Moving Averages: Look for stocks crossing above their 20-day or 50-day moving averages.
- Relative Strength Index (RSI): Identify stocks with an RSI indicating strong momentum (typically between 30-70 is neutral; above 70 may indicate overbought conditions).
- MACD (Moving Average Convergence Divergence): Watch for bullish crossovers.
4. Sector Performance
- Sector Indices: Check which sectors are performing well and look for top-performing stocks within those sectors.
5. Follow Market Experts
- Social Media and Forums: Follow analysts and traders on platforms like Twitter, StockTwits, and TradingView for insights and stock picks.
- Brokerage Reports: Review reports from brokerages and investment firms for recommended stocks.
Example Stock Screening Setup Using Chartink:
- Go to Chartink Screener.
- Create a new screener with the following filters:
- Price above 20-day moving average.
- Volume higher than average volume in the last 5 days.
- RSI above 50.
- Positive news sentiment (if available).
Example Stock List (Hypothetical):
- Reliance Industries (RELIANCE): Strong recent performance, positive news on expansion plans.
- HDFC Bank (HDFCBANK): Consistent upward trend, favorable quarterly results.
- Tata Consultancy Services (TCS): Bullish technical indicators, positive sector outlook.
- Infosys (INFY): Strong momentum, positive analyst ratings.
- Larsen & Toubro (LT): Recent breakout above resistance, high trading volume.
Steps to Manually Monitor for Rally Stocks:
- Open Your Stock Screener Tool (e.g., Tickertape, Screener.in).
- Apply Filters: Set criteria based on technical indicators and recent performance.
- Analyze Results: Look for stocks meeting your criteria and check for any recent news or announcements.
- Monitor Throughout the Day: Keep an eye on trading volumes and price movements.
Using these methods and tools will help you identify potential rally stocks for tomorrow in the NSE market.