What is the process of identifying momentum stock in intraday?

[Guru]

<p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>Top down approach</p>
<p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>1)world markets</p>
<p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>2)FII activity</p>
<p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>3)Indian markets</p>
<p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>4)market breath( advance decline ratio)</p>
<p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>5)market breath(turn over basis)</p>

[Hassain]

<p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>Top down approach:</p>

<ul style=”box-sizing: border-box; margin: 0px 15px 15px; direction: ltr; background-image: initial; background-position: 0px center; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial; list-style-position: inside; list-style-image: initial; padding: 0px; display: inline-block; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>
<li style=”box-sizing: border-box; direction: ltr; background: 0px center; margin: 0px; width: 708.4px; float: left;”>World markets
<li style=”box-sizing: border-box; direction: ltr; background: 0px center; margin: 0px; width: 708.4px; float: left;”>FII activities
<li style=”box-sizing: border-box; direction: ltr; background: 0px center; margin: 0px; width: 708.4px; float: left;”>Indian market
<li style=”box-sizing: border-box; direction: ltr; background: 0px center; margin: 0px; width: 708.4px; float: left;”>Market breadth(Advance decline ratio)
<li style=”box-sizing: border-box; direction: ltr; background: 0px center; margin: 0px; width: 708.4px; float: left;”>Market breadth(turnover basis)

[Sriram Raghavendran]

1. World markets

2. FII activity

3. Indian market

4. Advance/Decline ratio

5. Turnover Basis

[Ananthakrishnan]

Considering all the below factors

1. World markets

2. FII activity

3. Indian market

4. Advance/Decline ratio

5. Turnover Basis

[Aravind T]

Top-down approach is used in identifying the momentum of the stock in intraday.

 

1.First look at the global markets- for us it is European market due to the time zone and quantify them as negative or positive.

2.FII activity and Indian market(NIFTY).

3.Check the market breadth(advance/decline ratio)-both on a turnover basis and price basis.

4.Check the sector contribution that is weighing for the current market direction.

5.Select the top two sectors that is responsible for the prevailing market direction.

6.Now filter top 4 stocks from the filtered sectors.

7.Again filter the stocks that is trading with high volume.

Now according to the trend take a long or short position with the entry price and stoploss price pre-defined.

[Author]

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