List of momentum stocks with low volatility: Feb 2019

Published: February 15, 2019 at 10:11 am

Last Updated on

This is a list of Nifty 100 stocks with momentum and low volatility for Feb. 2019 I will publish this list on a monthly basis. Readers interested in momentum investing combined with low volatility can use this as a starting point. This is the previous month’s list:  Nine momentum stocks with low volatility for 2019. This time I have used both daily and monthly returns (last one year) for screening.

What is momentum investing? Invest in  stocks that have moved up considerably over the past 6-12 months hoping that the trend will continue into the future (for a short period). Relevant data and links for the Indian and US markets is discussed here: Momentum Stock Investing in India: Does it work?.

What is low volatility investing? Low volatility investing refers to identifying stocks with low price fluctuations and investing in them. Again this is based on past evidence: Low volatility stock investing: Does it work? Higher returns at lower risk?

As discussed in the first link above, there is a close connection between momentum investing and low volatility. In fact, most momentum stock picking strategies also include a way to filter out stocks based on volatility. They prefer stocks that have moved up in the past (= momentum) with low volatility. Another idea that is closely related is to hunt for stocks that have stayed close to their all-time price highs.

List of momentum stocks with low volatility: Feb 2019

Warning: Whether you choose stocks with momentum or low volatility or both, it is important to recognise when to sell the stocks. This kind of trend following requires serious levels of discipline and commitment.  You should be able to buy a stock without question and sell it without question in a short period of time if it no longer has enough momentum and/or low volatility.  If you get distracted by the valuation of the stocks, their ROE etc and hesitate or buy more than necessary it will not work. Please do not blindly use this list to buy and clutter your portfolio. This list will evolve in method with time. So be prepared for this. Do your own research about momentum and low volatility investing!!

Momentum Investing in India

You can watch this video version of the above-linked post to get an introduction to momentum investing

Procedure followed (a similar procedure was followed for monthly returns too)

To play it safe, I would like to stick with the Nifty 100. The full list can be downloaded from below.

1: Download last one-year stock price from moneycontrol. You can do this for any stock with this tool: Automated Earnings Power Stock Analysis With Screener.in data

2: Calculate daily returns (usual and logarithmic)

3: Calculate standard deviation in daily returns (usual and logarithmic). This is the volatility.

Hate ads but would like to support the site? Subscribe to our ad-free newsletter and get beautifully formatted full articles delivered to your inbox!

4: Calculate CAGR of the last year. This is the momentum. Note that BSE uses CAGR/volatility as the momentum score

5: Calculate how many daily returns were positive. This is a measure of the quality of the momentum.

6:We will short-list only those stocks with a positive return.

7: We will demand that at least half the daily returns should have been positive to obtain the final list. Out of the 247 daily returns, at least half should have been positive.

List of stocks with momentum and low volatility (Feb 2019)

It also shows data from the previous listing for comparison. Stocks in red have dropped out of the current list. This is based on daily returns.

2019 Feb2018 Dec
BritanniaBritannia Industries Ltd.
ColgateColgate Palmolive (India) Ltd.
DaburHDFC Bank Ltd.
HCL TechHindustan Unilever Ltd.
HDFC BankHousing Development Finance (part of monthly return list)
HULInfosys Ltd.
InfosysKotak Mahindra Bank Ltd.
Kotak MahindraMarico Ltd.  (part of monthly return list)
P and GPidilite Industries Ltd.
Pidilite
Reliance
TCS
Titan Company
Wipro

Listing based on monthly returns

Stocks marked common to both monthly and daily return based lists are shown in green. It is better to focus on those.

  1. Asian Paints Ltd.
  2. Britannia Industries Ltd.
  3. Colgate Palmolive (India) Ltd.
  4. Container Corporation of India Ltd.
  5. Dabur India Ltd.
  6. HCL Technologies Ltd.
  7. Housing Development Finance
  8. HDFC Bank Ltd.
  9. Hindustan Unilever Ltd.
  10. Infosys Ltd.
  11. Larsen & Toubro Ltd.
  12. Marico Ltd.
  13. Procter & Gamble Hygiene & Health
  14. Tech Mahindra Ltd.
  15. Titan Company Ltd.
  16. Wipro Ltd.

Download the full list of momentum stocks with low volatility for Feb 2019 (excel data filters are “on” as mentioned in the above steps. Clear those if you want to screen on your own)

New Videos from the freefincal YouTube channel

Do share if you found this useful
Hate ads but would like to support the site? Subscribe to our ad-free newsletter and get beautifully formatted full articles delivered to your inbox!

About the Author

Pattabiraman editor freefincalM. Pattabiraman(PhD) is the founder, managing editor and primary author of freefincal. He is an associate professor at the Indian Institute of Technology, Madras. since Aug 2006. Connect with him via Twitter or Linkedin Pattabiraman has co-authored two print-books, You can be rich too with goal-based investing (CNBC TV18) and Gamechanger and seven other free e-books on various topics of money management. He is a patron and co-founder of “Fee-only India” an organisation to promote unbiased, commission-free investment advice.
He conducts free money management sessions for corporates and associations on the basis of money management. Previous engagements include World Bank, RBI, BHEL, Asian Paints, Cognizant, Madras Atomic Power Station, Honeywell, Tamil Nadu Investors Association. For speaking engagements write to pattu [at] freefincal [dot] com

About freefincal & its content policy

Freefincal is a News Media Organization dedicated to providing original analysis, reports, reviews and insights on developments in mutual funds, stocks, investing, retirement and personal finance. We do so without conflict of interest and bias. We operate in a non-profit manner. All revenue is used only for expenses and for the future growth of the site. Follow us on Google News
Freefincal serves more than one million readers a year (2.5 million page views) with articles based only on factual information and detailed analysis by its authors. All statements made will be verified from credible and knowledgeable sources before publication. Freefincal does not publish any kind of paid articles, promotions or PR, satire or opinions without data. All opinions presented will only be inferences backed by verifiable, reproducible evidence/data. Contact information: letters {at} freefincal {dot} com (sponsored posts or paid collaborations will not be entertained)

Connect with us on social media

Our Publications


You Can Be Rich Too with Goal-Based Investing

You can be rich too with goal based investingThis book is meant to help you ask the right questions, seek the right answers and since it comes with nine online calculators, you can also create custom solutions for your lifestyle! Get it now. It is also available in Kindle format.
   

Gamechanger: Forget Startups, Join Corporate & Still Live the Rich Life You Want

Gamechanger: Forget Start-ups, Join Corporate and Still Live the Rich Life you wantThis book is meant for young earners to get their basics right from day one! It will also help you travel to exotic places at low cost! Get it or gift it to a young earner

Your Ultimate Guide to Travel

Travel-Training-Kit-Cover-new

This is a deep dive analysis into vacation planning, finding cheap flights, budget accommodation, what to do when traveling, how traveling slowly is better financially and psychologically with links to the web pages and hand-holding at every step. Get the pdf for Rs 199 (instant download)  

Free Apps for your Android Phone

Comment Policy

Your thoughts are the driving force behind our work. We welcome criticism and differing opinions.Please do not include hyperlinks or email ids in the comment body. Such comments will be moderated and I reserve the right to delete the entire comment or remove the links before approving them.

Leave a Reply

Your email address will not be published. Required fields are marked *