← All Strategies

Momentum Portfolio

High Risk

Ride the trend, manage the risk

Momentum investing buys stocks showing strong price and earnings momentum — the trend is your friend. Requires quarterly rebalancing and strict stop-losses.

Investment Philosophy

Research shows that stocks that have outperformed over the past 6-12 months tend to continue outperforming in the near term (momentum effect). This strategy systematically buys relative strength leaders and exits when momentum fades. It's evidence-based but requires discipline.

Selection Criteria

  • ✓ 6-month price return in top 20% of Nifty 500
  • ✓ 12-month price return in top 25% of Nifty 500
  • ✓ Relative Strength Index (RSI) between 50-75 (strong but not overbought)
  • ✓ Trading above 50-day and 200-day moving averages
  • ✓ Increasing delivery volumes (institutional interest)

Top 5 Picks

1. Bharti Airtel

BHARTIARTL · Telecom

Large Cap

CMP

₹1,720

P/E

75.8

ROE

15.2%

Div

0.5%

Strong price momentum with 40%+ return in 12 months. ARPU growth story intact with tariff hikes. 5G rollout creating new revenue streams. Institutional favourite.

2. Bharat Electronics

BEL · Defence Electronics

Large Cap

CMP

₹295

P/E

42.5

ROE

22.8%

Div

0.8%

Defence sector momentum leader. Order book of ₹76,000+ Cr provides 4-year revenue visibility. Government push for indigenous defence procurement. 50%+ returns in 12 months.

3. HAL

HAL · Defence / Aerospace

Large Cap

CMP

₹4,250

P/E

35.2

ROE

28.5%

Div

0.9%

India's sole fighter aircraft manufacturer. Order book of ₹1.2 lakh Cr. Tejas, LCH, and ALH orders driving multi-year growth. Strong institutional momentum.

4. IRFC

IRFC · Infrastructure Finance

Large Cap

CMP

₹148

P/E

28.5

ROE

14.5%

Div

1.2%

Railway capex beneficiary with strong momentum. Government's ₹2.5 lakh Cr annual railway budget ensures demand. Low NPA risk as sole borrower is Indian Railways.

5. Mazagon Dock Shipbuilders

MAZDOCK · Defence / Shipbuilding

Mid Cap

CMP

₹4,800

P/E

38.5

ROE

25.2%

Div

0.7%

India's top warship builder. Order pipeline of ₹40,000+ Cr. Naval modernisation and submarine programme driving growth. 60%+ returns in 12 months with strong volume surge.

Strategy Details

Time Horizon
6–12 months (rebalance quarterly)
Risk Level
High
Ideal For
Active traders and investors comfortable with frequent portfolio adjustments and disciplined stop-losses.
Number of Stocks
5
MF Screener → Financial Tools →
Disclaimer: This stock list is for educational purposes only. The stocks mentioned are not buy/sell recommendations. Prices, P/E ratios, and other metrics are approximate as of April 2026 and may not reflect current values. All investments carry risk, including loss of principal. Consult a SEBI-registered investment advisor before making any investment decisions.