Adani Ports, Bajaj Finance: These 62 stocks in Nifty500 promise smart gains

Among the Nifty 500 stocks, nearly 370 stocks are trading on the upper side of the momentum indicators

Markets witnessed some profit-booking on Tuesday amid soured global sentiment as Germany, the Netherlands, and London announced imposition of stricter lockdowns in the wake of surge in Covid-19 cases. TRACK MARKETS HERE

Such intermediate corrections, analysts say, are healthy in a market where benchmarks have recovered sharply from their March 2020 lows and are trading near their respective record high levels. The highlight of this market rally, however, remains recovery in the broader markets where mid and small caps are ruling at the bourses with strong optimism.

As per the technical charts, among the Nifty 500 stocks, nearly 340–370 stocks are trading on the upper side of the momentum indicators like Moving Average Convergence Divergence (MACD) - an indicator that shows relationship between two moving averages of a stock price. The strength on the Relative Strength Index (RSI) -- a metric to judge whether a stock is in overbought or oversold zone -- has been phenomenal with stocks climbing higher highs.

Typically, stocks attract attention in case of a sharp movement on either side - a steep fall or a sharp rally. Those at or nearing all-time high levels are also in the limelight. A rise in the stock coupled with a steadily increaing volume can see the counter enter a strong bullish sentiment on the charts, pushing the price in an uncharted territory.

On the flipside, any unforeseen negative trigger may also lead to profit-booking. That said, the underneath trend in the stock remains skewed towards positive sentiment and an investor can consider accumulating and adding long positions. Generally, investors opt for such opportunities to make profitable trades. 

On these lines, nearly 62 stocks, from a basket of 340 stocks that are trading with bullish sentiment, in Nifty500 index are showing opportunity for trading as prices are steadily entering uncharted territory with manageable volatility. The trend remains upward, supporting a safe trade.

Noticeable names from the Nifty500 pack include Adani Enterprises Limited, Adani Ports and Special Economic Zone Limited, Apollo Hospitals Enterprise Limited, Bajaj Auto Limited, Berger Paints (I) Limited, Navin Fluorine International Limited, Procter & Gamble Health Limited, Voltas Limited, Nestle India Limited, etc.

These stocks are showing strength on their monthly charts with the trend expected to stay positive going-forward.

Source: www.spidersoftwareindia.com