These 5 stocks are in strong momentum. Good time to add?

Summary

In this video, Akshat Shrivastav discusses momentum stocks and why certain stocks, despite recent run-ups, are not yet overvalued. He analyzes specific stocks like Whirlpool, Fine Organic, HDFC Bank, and Bandhan Bank, explaining their momentum and market conditions. Akshat emphasizes the importance of understanding technical patterns, market trends, and the concept of risk-adjusted reward in stock investment. He also highlights the potential of consumer durable companies in the coming months and advises viewers on how to manage their portfolios based on their risk appetite.

Takeaways

• 📈 Stocks in momentum: Akshat explains why certain stocks are currently experiencing momentum.
• 💡 Not overvalued: Despite their rise, these stocks are not hyper-overvalued.
• 🔄 Example: Whirlpool saw a 12% increase in a single day after his post.
• ⚠️ Disclaimer: The video is not a push to buy these stocks but an explainer on identifying momentum.
• 👨‍🏫 Framework: Akshat provides a framework to identify and add momentum stocks to your portfolio.
• 📊 Market view: The market has recently seen a breakout, turning resistance lines into support.
• 📉 Downside risk: The immediate downside risk is capped, barring major news.
• 📉 Trend analysis: Akshat discusses the trend and market cap of certain stocks like Zudio, comparing their profit margins.
• 📉 Stock analysis: He analyzes specific stocks like Fine Organic, HDFC Bank, and Bandan Bank, highlighting their momentum and profitability.
• 🛠️ Portfolio management: Akshat advises on managing your portfolio according to risk appetite and understanding the concept of risk-adjusted reward.

Q & A

What is the primary purpose of the video?

The primary purpose of the video is to present an explainer on how to identify momentum in particular stocks and decide whether to add these types of stocks to one's portfolio.

Who is the speaker in the video?

The speaker is Akshat Shrivastav, who has worked in the finance/consulting domain for the last 14 years and currently runs a hedge fund.

What example does the speaker give to illustrate a stock's momentum?

The speaker mentions Whirlpool, which gave a 12% run-up in a single day, as an example of a stock in momentum.

What disclaimer does the speaker provide regarding the stocks mentioned?

The speaker emphasizes that the stocks mentioned are just examples and not a push for viewers to buy them. The intent is to provide a framework for viewers to pick stocks on their own.

What is the significance of a breakout in the market according to the speaker?

A breakout signifies that a resistance line turns into a support line, indicating potential upward movement in the market.

What major downside does the speaker mention for the market in the short term?

The speaker mentions a potential fall of 1.3% as the first major downside to the market in the short term, unless a major news event occurs.

What technical pattern does the speaker describe for identifying stock momentum?

The speaker describes drawing technical chart patterns that indicate momentum, such as specific trends and target price computations.

How does the speaker compare different types of retail businesses in terms of profit margins?

The speaker compares non-luxury retail businesses like Zudio, which have lower profit margins (10-15%), to luxury retail businesses like Apple, which have higher profit margins (50-60%).

What is the speaker's view on consumer durable companies for the next 6-12 months?

The speaker believes that consumer durable companies are likely to perform well in the next 6-12 months due to recovering consumer demand and potential interest rate cuts.

What advice does the speaker give regarding portfolio building and risk management?

The speaker advises viewers to build their portfolios according to their risk appetite and to understand the concept of risk-adjusted rewards, noting that small cap returns cannot be expected from investing in large, stable banks like HDFC Bank.