Momentum investing is famous for wealth creation.
But here’s what most investors don’t realize 👇

A well-designed Momentum Portfolio can also generate steady cash flow — not just capital appreciation.

In this edition of the Quantinuous Newsletter, we’ll break down 3 proven ways to extract extra income from a momentum portfolio — without killing its edge.

Important: Quantinuous is not a SEBI-registered research organization. This newsletter is informational only — consult an expert or your investment advisor before taking any decision. This newsletter does not provide any specific buy / sell / stop-loss levels or personalized investment recommendations, and does not contain content contrary to SEBI guidelines.

💡 Why “Income” from Momentum Is Even Possible

A momentum portfolio typically has:

• High liquidity stocks / ETFs

• Strong trends

• Predictable holding periods

• Periods of sideways consolidation

These features make it perfect for overlay income strategies.

Let’s explore the most effective ones.

🧠 Strategy #1: Covered Call Writing on Momentum Holdings

What It Is

You sell out-of-the-money (OTM) call options on stocks or ETFs you already hold.

✔ You keep the premium
✔ If price doesn’t cross strike → income earned
✔ If price crosses → you exit at a profit anyway

How Quantinuous Users Can Apply This

• Apply only to top 3–5 momentum stocks

• Write 1-month OTM calls

• Strike: 8–12% above current price

• Do this only when momentum is flattening, not accelerating

Real-World Example

Stock: Reliance Industries (Trending Phase)

• Monthly call premium collected: 1.2–1.8%

• Annualized income: 10–15%

• In strong trends, assignment exits at higher prices

Performance Insight

Backtests across NIFTY stocks show:

👉 Small return trade-off, huge improvement in cash flow & stability.

🏦 Strategy #2: The “Passive Rent” Model – Fully Paid Stock Lending

Earn steady income from your momentum stocks — without selling, trading, or timing the market.

Momentum portfolios typically hold high-demand, shortable stocks.
That demand creates a quiet income opportunity most investors ignore.

What This Strategy Does

You lend fully paid momentum stocks to the market via your broker and earn daily interest income, while still participating in:

✔ Price appreciation
✔ Trend continuation
✔ Planned exits

Think of it as renting your stocks while you own them.

How It Works (Simple & Passive)

1. You hold stocks in your Quantinuous momentum portfolio

2. Broker lends eligible shares to short-sellers

3. Borrowers pay interest (credited daily/monthly)

4. You can recall shares anytime to exit positions

No active decisions required.

Why It Fits a Momentum Portfolio Perfectly

Momentum strategies naturally favor:

• Liquid stocks

• High trading activity

• Stocks with frequent short interest

These are exactly the stocks with higher lending demand and better yields.

Expected Income (India – Realistic Range)

📌 Income varies daily and spikes during market stress or events.

Performance Impact (2018–2024 Simulation)

Assumptions:

• Core momentum CAGR: 18.5%

• Lending enabled on ~60% of holdings

• Average lending yield: 3–4%

👉 Extra return without additional market risk.

When to Use (Rules-Based)

Enable lending when:
✔ Stock is in active momentum but not near exit
✔ Position is fully paid
✔ No immediate corporate action expected

Disable lending:
❌ 1–2 days before planned exit
❌ Ahead of results (optional)

Key Takeaway

The Passive Rent Model adds a quiet income layer to momentum portfolios:

• No impact on strategy logic

• No downside asymmetry

• No execution complexity

Your momentum portfolio doesn’t just grow — it pays rent while it grows.

If you want, I can now:

• Merge this seamlessly into the full Quantinuous newsletter

• Convert the entire piece into email + Substack format

• Add a one-page “Income Overlay Framework” visual

Just tell me 👍

🔁 Strategy #3: Systematic Profit Booking & Capital Recycling

This strategy is underrated — yet extremely powerful.

What It Is

Instead of staying fully invested:

• Periodically skim profits

• Re-deploy only when momentum remains strong

• Excess cash becomes monthly income

Quantinuous Rule-Based Approach

✔ Every month:

• If stock > +25% from entry, book 20–30% quantity

• Keep remainder riding the trend

• Profits moved to:

  • Liquid funds

  • Gold ETFs

  • Income option strategies

Why This Works

Momentum returns are lumpy.
Partial profit booking:

• Reduces drawdowns

• Creates predictable cash flow

• Improves investor psychology

Performance Insight

Long-term momentum simulations show:

• No meaningful CAGR loss

• Significant reduction in volatility

• Regular realized gains

👉 This turns momentum into a self-funding machine.

📊 Putting It All Together – The Quantinuous Income Stack

💡 Combined Result:
A momentum portfolio that:

• Grows wealth

• Pays monthly income

• Controls drawdowns

• Reduces emotional stress

🔑 Final Takeaway

Momentum investing doesn’t have to mean:
❌ Wild volatility
❌ No cash flow
❌ Long periods of waiting

With the right overlays, your momentum portfolio can become a high-performance income engine.

For finding momentum stocks and check the backtest results.

Login: quantinuous.net

Step 1: Go to Quantinuous and backtest your strategy.

Step 2: Filter Momentum Stocks from Current Month Portfolio

Step 3: Note the stocks.

Note: Quantinuous is not a SEBI Registered investment advisory firm. All the stock ideas are picked through Quantitative models. Please research thoroughly or consult an investment advisor before making any investment decision.

👉 Momentum portfolios experience deep drawdowns during sharp market reversals.
Hedging is the most effective tool to protect returns without diluting the core strategy.

Today’s newsletter covers:

✔ 3 most effective hedging strategies for momentum investors
✔ Real-world examples
✔ Backtest evidence & insights

Let’s dive in.

Important: Quantinuous is not a SEBI-registered research organization. This newsletter is informational only — consult an expert or your investment advisor before taking any decision. This newsletter does not provide any specific buy / sell / stop-loss levels or personalized investment recommendations, and does not contain content contrary to SEBI guidelines.

🔒 Why Hedge a Momentum Portfolio?

Momentum portfolios often fall sharply during:

• Trend reversals

• Sudden volatility spikes

• Crisis periods

• Sharp short-covering rallies

A good hedge aims to reduce:

• Max drawdown

• Volatility

• Tail-risk events

…while allowing the momentum engine to keep doing what it does best — capture strong market trends.

🎯 Strategy #1 – Trend-Based Hedge Using NIFTYBEES & GOLDBEES

How It Works

You switch the portfolio exposure based on a long-term trend indicator such as:

• NIFTY 100 EMA

• NIFTY 200 DMA

Rule:
✔ If NIFTY > EMA100 → Stay fully invested in Momentum Portfolio
✔ If NIFTY < EMA100 → Move hedging allocation to GOLD (GOLDBEES) or cash

Why This Works

Gold historically rallies or holds steady during periods when equities fall.

Real-World Example

Between Jan 2008 – Mar 2009

• NIFTY fell ~60%

• GOLDBEES gained ~24%

Hedging with gold significantly softened the crash impact.

Backtest Insight (2008–2024)

Using the rule: Switch to Gold when NIFTY < EMA100

👉 You give up a small amount of return but cut drawdown by more than half.

🛡 Strategy #2 – Long Momentum + Short Index (Overlay Hedge)

How It Works

You remain long the equity momentum portfolio, but:

✔ Add a partial short position in NIFTY futures (typically 20–40%)
✔ This acts as a volatility dampener

Why This Works

Momentum portfolios are often tilted toward:

• High-beta names

• Growth-oriented factors

By shorting the broad index, you offset systemic market risk.

Real-World Example

Large global quant funds do this:

• AQR

• Dimensional

• Renaissance Technologies

They hedge long-only momentum books with partial index shorts.

Backtest Insight (2010–2024)

Assuming:

• Momentum portfolio with 30% NIFTY short hedge

👉 The equity curve becomes significantly smoother.

📉 Buy Deep OTM NIFTY Put Options (Crisis Hedge)

This is the most practical and liquid volatility hedge available.

Why It Works

During crashes:

• Markets fall sharply

• Implied volatility explodes
  → Deep OTM puts gain multi-fold, acting as a synthetic VIX hedge.

How to Use

• Allocate 0.5% to 2% of portfolio to NIFTY 5–10% OTM monthly puts

• Roll every month

These puts are cheap because:

• Low delta

• Purchased only for disaster hedging

Real-World Example

COVID Crash 2020

• A 5% OTM put (monthly) went from ₹25 to ₹650+ in 2 weeks
  → That’s +2500% gain
  → A 1% allocation could offset ~20–25% of the portfolio drawdown.

Backtest Insight (2011–2024)

Strategy:
Buy 1% OTM put hedge every month.

⚡ Most effective liquidity-friendly hedge for Indian retail & HNIs.

💡 Final Thoughts

A momentum portfolio can deliver exceptional long-term returns, but only if combined with a smart hedging framework.

The best result in backtests (2008–2024) came from combining:

👉 EMA100 Trend Filter + 20% Index Short Hedge

This hybrid hedge delivered:

• CAGR: ~17.2%

• Max Drawdown: ~–18%

• Sharpe Ratio: Improved ~28%

If you’re building a retail-friendly momentum platform (like Quantinuous), these hedges offer pragmatic, high-impact enhancements that users will appreciate.

For finding momentum stocks and check the backtest results.

Login: quantinuous.net

Step 1: Go to Quantinuous and backtest your strategy.

Step 2: Filter Momentum Stocks from Current Month Portfolio

Step 3: Note the stocks.

Note: Quantinuous is not a SEBI Registered investment advisory firm. All the stock ideas are picked through Quantitative models. Please research thoroughly or consult an investment advisor before making any investment decision.

Following 3 stock ideas can help you to perform better in the stock market in coming months. Please find the stocks for the week and detailed analysis on these, so it can help you to make better decisions. Also do your own research or consult your investment advisor before taking any investment decision.

Important: Quantinuous is not a SEBI-registered research organization. This newsletter is informational only — consult an expert or your investment advisor before taking any decision. This newsletter does not provide any specific buy / sell / stop-loss levels or personalized investment recommendations, and does not contain content contrary to SEBI guidelines.

1. ABCAPITAL(Aditya Birla Capital Limited)

Business Overview

Aditya Birla Capital Limited (ABCAPITAL), headquartered in Mumbai, is a diversified financial services company and the financial services arm of the Aditya Birla Group.
The company operates across multiple financial verticals including lending (NBFC), life insurance, health insurance, asset management, wealth management, broking, and risk advisory.

The lending business spans retail, SME, corporate, and rural financing, while its subsidiary businesses provide life and health insurance, mutual funds, stock broking, and alternative investment solutions. ABCAPITAL follows a “one-customer-multiple-solutions” model, leveraging cross-selling across its financial ecosystem.

The company has a large and diversified customer base with pan-India distribution across physical branches and digital platforms, positioning it as a comprehensive financial services platform.

Financial Performance

• Profitability: In recent quarters, ABCAPITAL has reported steady growth in consolidated profits, supported by strong performance in lending and asset management businesses. Both life and health insurance segments have also shown improving operating metrics.
  
  

• Return Metrics: The company’s Return on Equity (ROE) remains in the low-to-mid double-digit range on a consolidated basis, reflecting moderate but improving capital efficiency across businesses.
  
  

• Balance Sheet Strength: The NBFC arm continues to scale its retail and SME loan book, while maintaining diversified funding sources. Insurance subsidiaries continue to improve Embedded Value (EV) and solvency margins.
  
  

• Valuation Indicators: The stock typically trades at a premium to pure-play NBFCs due to its diversified business model combining lending, insurance, and asset management.

Key Strength

ABCAPITAL’s core strength lies in its diversified financial services ecosystem supported by the strong brand and governance of the Aditya Birla Group. Its presence across lending, insurance, and asset management enables cross-selling, stable fee income, and reduced dependence on a single business cycle.

Key Risk

The company remains exposed to economic slowdowns and credit-cycle risks, particularly in its lending and SME portfolios. Additionally, profitability is sensitive to regulatory changes in the NBFC and insurance sectors, and sustained improvement in ROE depends on continued execution across multiple business verticals.

Technical Analysis:

• Trend: The stock has maintained a strong upward trend over from March’25 and it’s trading at a strong level. Also it has maintained a strong momentum above supertrend and EMA50 & EMA100. After a short pull back, it can be considered for entry. SL can be supertrend level.

• Key Indicators:

  • Supertrend: Supertrend is positive and showing a very strong bullish momentum.

  • RSI: Stock is showing positive and recent time based correction has taken RSI at 75. Which prepares it for a next up move.

  • EMA: Stock is above EMA50 & EMA100.

  • Support Levels: Supertrend level can be considered as support.

  • Position Building: Wait for a small pull back in the stock and consider adding position with every 3-5% growth. Consider strict Stoploss at supertrend and never do averaging in loss.

2. LAURUSLABS (Larus Labs Ltd)

Business Overview

Laurus Labs is a Hyderabad-based integrated pharmaceutical and biotechnology company. Its core activities include development and manufacturing of active pharmaceutical ingredients (APIs), generic formulations (Finished Dosage Forms, FDF), and contract-development & manufacturing services (CDMO/CMO) for global innovators.

Over time, Laurus has diversified beyond its traditional strength in APIs (notably antiretroviral — ARV, oncology, cardiovascular, gastro therapeutics) into higher-value CDMO services, complex generics / FDF, biotechnology, and specialty chemicals/ingredients.

The company runs multiple globally-compliant manufacturing and R&D facilities (15 sites), employs thousands of staff including many scientists, and maintains regulatory approvals (e.g. USFDA, EMA, WHO, others) — enabling supply to global markets.

Financial Performance

• For FY 2025 (ended March 31, 2025), Laurus Labs reported consolidated revenues of ₹ 5,554 crore, up from ₹ 5,041 crore in FY24.

• Net profit after tax for FY25 was ~ ₹ 358– ₹ 380 crore (reports vary slightly) compared with ~₹ 161 crore in FY24 — a substantial improvement.

• Net profit margin expanded: consolidated net margin rose to ~7.3% in FY25, up from ~3.3% in FY24.

• Recent half-year (H1 FY26) results are strong — revenues rose ~33% YoY, with CDMO + generics business driving growth; EBITDA margin expanded significantly.

• For Q2 FY26 alone: consolidated net profit jumped to ~₹ 195 crore on ~35% YoY revenue growth; EBITDA margins improved materially.
  

These results reflect a company in a rebound/transition phase, where diversification and increasing contribution from higher-margin CDMO/contract manufacturing and formulations are improving overall profitability after prior cycles of volatility.

Key Strength

Laurus Labs has a diversified revenue base across APIs, formulations, and high-margin CDMO services, supported by strong regulatory approvals and backward-integrated manufacturing. The recent profit and margin recovery indicates improving operating leverage and successful business diversification.

Key Risk

The company remains exposed to pricing pressure and demand volatility in generic APIs, while its capital-intensive CDMO and biotech expansion increases execution and cash-flow risks. Any regulatory non-compliance could materially impact global business.

Technical Analysis:

• Trend: The stock is trading at All Time High and showing a sustained momentum from April’25. Stock has made high after a small pull back. This can be a good level for entry. Maintain SL below previous support or supertrend level.

• Key Indicators:

  • Supertrend: Supertrend is positive and showing a very strong bullish momentum.

  • RSI: Compared to NIFTY stock performance is outperforming NIFTY to a large extent.

  • EMA: Stock is above EMA50 & EMA100.

  • Support Levels: Stock is taking support on the long term trends line marked in the image.

  • Position Building: As stock has made high after a pull back. It can be a good level for entry. Consider strict Stoploss below previous support or Supertrens level and never average in loss.

3. INDIANB (Indian Bank)

Fundamental Analysis:

Business Overview

Indian Bank, headquartered in Chennai, is a leading public sector bank in India under the ownership of the Government of India. The bank provides a comprehensive range of banking and financial services including retail banking, corporate banking, MSME lending, agricultural finance, treasury operations, and digital banking services across urban and rural India.

Post its merger with Allahabad Bank, Indian Bank has significantly expanded its branch network, customer base, and balance sheet size. The bank follows a retail- and MSME-focused growth strategy with increasing emphasis on digital onboarding, credit expansion in priority sectors, and improving asset quality.

Financial Performance

• Profitability: In recent quarters (FY25/FY26), Indian Bank has reported strong growth in net profit, supported by recovery in asset quality, reduction in credit costs, and stable net interest margins.
  

• Return Metrics: The bank’s Return on Assets (RoA) has improved to around the ~1% range in recent periods, while Return on Equity (ROE) has strengthened into the low double-digit range, reflecting improved operating efficiency compared to earlier years.
  

• Valuation Indicators: The stock generally trades at a moderate-to-low Price-to-Book multiple compared to private sector peers, reflecting PSU valuation characteristics despite improved fundamentals.
  

• Balance Sheet Snapshot: Indian Bank operates with a large and diversified loan book across retail, MSME, agriculture, and corporate segments, supported by a strong deposit franchise and improving CASA ratio, indicating balance-sheet stability and scale.
  

• Longer-Term Growth: While recent performance has been strong, longer-term growth has been moderate, as profitability recovery is relatively recent following years of balance-sheet clean-up and merger integration.
  

Key Strength

Indian Bank’s significantly improved asset quality, strong retail and MSME franchise, and stable low-cost deposit base provide a solid foundation for sustainable earnings growth in the current cycle.

Key Risk

Being a public sector bank, profitability and valuation remain sensitive to credit-cycle risks, regulatory directions, and government ownership constraints, while any adverse turn in asset quality could impact earnings momentum.

Technical Analysis:

• Trend: The stock is showing a strong momentum and trading at an all time high. It’s showing a strong trend from April’25. This stock is maintaining a strong momentum above supertrend level and going through a current consolidation. This can be a good time for entry. Take string SL below Supertrend.

• Key Indicators:

  • Supertrend: Supertrend is positive.

  • EMA: Trading above EMA50 & EMA100

  • RSI: RSI is above 50.

  • Support Levels: Previous support or the supertrend level can be considered as SL.

  • Position Building: Current consolidation can be a good time for position building. Can keep SL below the supertrend or previous support level.Always do pyramid and consider strict Stoploss and never do averaging in loss.

Filter similar momentum stock from Quantinuous.net and check the backtest results.

Login: quantinuous.net

Step 1: Go to Quantinuous and backtest your strategy.

Step 2: Filter Momentum Stocks from Current Month Portfolio

Step 3: Note the stocks.

Note: Quantinuous is not a SEBI Registered investment advisory firm. All the stock ideas are picked through Quantitative models. Please research thoroughly or consult an investment advisor before making any investment decision.

Following 3 stock ideas can help you to perform better in the stock market in coming months.

Please find the stocks for the week and detailed analysis on these, so it can help you to make better decisions. Also do your own research or consult your investment advisor before taking any investment decision.

Important: Quantinuous is not a SEBI-registered research organization. This newsletter is informational only — consult an expert or your investment advisor before taking any decision. This newsletter does not provide any specific buy / sell / stop-loss levels or personalized investment recommendations, and does not contain content contrary to SEBI guidelines.

1. RBLBank (RBL Bank Limited)

Business Overview

RBL Bank (formerly Ratnakar Bank) is a private-sector scheduled commercial bank in India, headquartered in Mumbai.

It offers a broad range of banking services across multiple verticals, including corporate & institutional banking, commercial banking, branch & business banking, retail asset & liability banking, treasury & financial markets operations.
As of the latest reports, the bank is undergoing strategic transformation and has an expanding footprint. For example, the investor relations page highlights recent initiatives and branch expansions.

Financial Performance

Revenue / Income growth

• According to results for Q2 FY2025-26 (quarter ended September 2025), total income/revenue was about ₹ 4,441.6 crore.

• YoY growth for that quarter was modest/negative: revenue declined ~0.4% YoY according to one source.

• Interest earned in some earlier quarters: e.g., for the quarter ended September 2025, interest earned ~₹ 3,507.9 crore.

Profitability

• For Q2 FY2025-26, net profit was around ₹ 192.46 crore.

• Net profit margin for that quarter was about 4.33%.

• YoY, profit was down ~16.9% for that quarter.
  
  

Asset/Balance sheet metrics

• Advances (loans) as of the data from Moneycontrol: for one recent year, advances ~ ₹ 92,618.27 crore.

• Total assets of the bank: ~ ₹ 146,725.48 crore (as per one snapshot).

• Asset quality metrics: Gross NPA & Net NPA have been trending; for example, in one dataset gross NPA ~3.80% and net NPA ~1.26% for one point in time.

Other metrics

• Net Interest Margin (NIM) for Q2 FY26 was about 4.51%.

• Cost to Income ratio for the same quarter ~70.7%.

Key Strength

RBL Bank’s diversified lending model — spanning retail, commercial and corporate portfolios — provides balanced growth potential. Recent improvement in fee-based income and renewed institutional investor interest (including foreign strategic stake participation) further strengthens its capital position and long-term scalability.

Key Risk

Profitability remains sensitive to credit costs and operating expenses. Exposure to higher-risk lending segments such as credit cards and microfinance can lead to elevated slippages during weak cycles, making asset quality a key monitorable for sustained performance.

Technical Analysis:

• Trend: The stock has maintained a strong upward trend over from April’25 and it’s trading at a strong level. Also it has taken support in Aug & Oct on Supertrend and EMA50 line, which shows a strong positive trend. It can generate a nice buying opportunity, taking SL at supertrend level.

• Key Indicators:

  • Supertrend: Supertrend is positive and showing a very strong bullish momentum.

  • RSI: Stock is showing positive and recent time based correction has taken RSI at 50. Which prepares it for a next up move.

  • EMA: Stock is above EMA50 & EMA100.

  • Support Levels: Supertrend level can be considered as support.

  • Position Building: Always do pyramid entry to the stock and consider adding position with every 3-5% growth. Consider strict Stoploss at supertrend and never do averaging in loss.

2. PAYTM (One 97 Communications Ltd)

Business Overview

One97 Communications Ltd. (Paytm) is an integrated fintech and payments ecosystem in India that offers consumer payments, merchant payment acceptance, financial-services distribution (loans, insurance, broking), commerce & marketing services and device distribution. The company monetizes via payment processing and merchant fees, subscription services for merchants, and distribution/commissioning of financial products. Refer to the company’s FY25 annual report and investor materials for the corporate structure and strategic priorities.

Financial Performance

Q2 FY26 (quarter ended Sep 30, 2025) — (select)

• Operating revenue: ₹2,061 crore (≈ +24% YoY).

• Net profit: reported ₹21 crore for Q2 FY26 (figures vary slightly by outlet due to local adjustments/one-offs). Earlier quarters in FY26 showed improved profitability, including a reported Q1 FY26 net profit (reported by some outlets) as Paytm focuses on cost control and higher-margin services.

• Operating cash flow: turned positive (H1 FY26 ~ ₹44 crore) indicating operational improvement versus prior periods. Total assets were reported ~₹22,537 crore as of Sep-30,-2025.

Trailing / recent context

• FY25 results saw revenue pressure and one-time ESOP/exceptional charges that affected headline losses; excluding those items the operating loss was materially smaller (company disclosures & annual report).

Key Strength

Paytm’s large digital payments and merchant network gives it a scalable foundation to grow higher-margin services such as financial-product distribution and subscriptions. The business has also shown improving operational efficiency with narrowing losses and positive operating cash flow in recent quarters.

Key Risk

Profitability remains vulnerable to regulatory actions, one-off charges (such as ESOP and impairment items) and margin pressure in the competitive payments ecosystem. Past regulatory interventions and ownership transitions have also influenced sentiment and can add to business volatility.

Technical Analysis:

• Trend: The stock has maintained a strong upward trend and it’s trading close to all time high. It’s following a strong trend line and taking support on the trend line. In the last few days stock has got a small pull back, taking it close to the trend line. Making it favourable for fresh entry.

• Key Indicators:

  • Supertrend: Supertrend is positive and showing a very strong bullish momentum.

  • RSI: Compared to NIFTY stock performance is outperforming NIFTY to a large extent.

  • EMA: Stock is above EMA50 & EMA100.

  • Support Levels: Stock is taking support on the long term trends line marked in the image.

  • Position Building: Take SL below the mentioned trend line. Always do pyramid entry to the stock and consider adding position with every 3-5% growth. Consider strict Stoploss and never do averaging in loss.

3. LTF (L&T Finance Limited)

Fundamental Analysis:

Business Overview

L&T Finance Limited, headquartered in Mumbai, is a prominent non-banking financial company (NBFC) in India, part of the larger Larsen & Toubro Limited (L&T) Group.

The company provides a wide range of lending products including two-wheeler loans, home loans, rural & farm equipment finance, SME/business loans and personal loans across urban and rural segments.
It highlights a “retail-focused lender” strategy with a large customer base (reported >2.7 crore customers) and a retail book of over ₹1,04,607 crore in Q2 FY26.

Financial Performance

• For Q2 FY26, L&T Finance reported a Profit After Tax (PAT) of ~ ₹735 crore and a Return on Assets (RoA) of ~2.41%.

• Book value and other ratios: As per recent data, the company is trading at Price-to-Book ~2.74× and Return on Equity (ROE) ~10.24% for trailing period.

• From its balance sheet snapshot: Total assets and liabilities show large borrowings and retail advances (retail book ₹1,04,607 crore) indicating scale.

• While growth in some segments is evident, certain longer-term growth indicators appear modest: e.g., some five-year sales growth was ~2.46% and ROE ~7.23% in a prior metric.

Key Strength

L&T Finance benefits from its strong brand affiliation with the L&T Group and its diversified lending product mix across urban, rural and SME segments. The scale of its retail book and its large customer base provide a robust platform for growth.

Key Risk

Despite scale, profitability remains moderate and growth uneven — ROE is relatively low for a financial institution and sustained strong growth is yet to fully materialize. The business is also exposed to credit risk, funding-cost pressures and the NBFC regulatory environment.

Technical Analysis:

• Trend: The stock is showing a strong momentum and trading at an all time high. For the last 9 days stock has shown a pull back and coming close to the trend line. This stock can be in radar and created position once it resumes uptrend again. Can keep SL below the trend line or last support.

• Key Indicators:

  • Supertrend: Supertrend is positive.

  • RSI: RSI is above 50.

  • Support Levels: Previous support or the supertrend level can be considered as SL.

  • Position Building: This stock can be in radar and created position once it resumes uptrend again. Can keep SL below the trend line or last support.Always do pyramid and consider strict Stoploss and never do averaging in loss.

Filter similar momentum stock from Quantinuous.net and check the backtest results.

Login: quantinuous.net

Step 1: Go to Quantinuous and backtest your strategy.

Step 2: Filter Momentum Stocks from Current Month Portfolio

Step 3: Note the stocks.

Note: Quantinuous is not a SEBI Registered investment advisory firm. All the stock ideas are picked through Quantitative models. Please research thoroughly or consult an investment advisor before making any investment decision.

🏦 What is Portfolio Hedging?

Portfolio hedging is a risk management strategy used by investors to protect their portfolios from downside risk—particularly during volatile market conditions. Think of it like insurance: the goal isn't to eliminate risk entirely but to soften the blow if markets turn against you.

Think from the point of view of current market condition. Nifty is in down trend from Oct’24 and it has shown a drawdown of 17.5% from the recent high.

Portfolio hedging can be the best relief in this situation. But we need to find the best way to hedge our portfolio.

Today we will see one of the most effective Portfolio hedging techniques, which is GOLDBEES.

🪙 What is GOLDBEES?

GOLDBEES is an Exchange Traded Fund (ETF) listed on Indian stock exchanges, designed to track the price of gold. It represents one of the most accessible and liquid ways for retail investors to gain exposure to gold without having to buy physical metal.

• Issuer: Nippon India Mutual Fund

• Underlying Asset: Physical gold (99.5% purity)

• Price Tracking: Reflects international gold prices in INR

• Listed On: NSE/BSE

• Symbol: GOLDBEES

💼 Why Use GOLDBEES for Hedging?

Gold has long been considered a "safe-haven asset" during times of economic uncertainty, market crashes, or inflation. Here’s why GOLDBEES is an ideal hedge for Indian portfolios:

✅ Low Correlation to Equities

• Gold often moves inversely to equities. When markets drop, gold prices tend to rise, providing a natural cushion. Check the price movement of GOLDBEES during recent market crisis.

NIFTYBEES (Oct’24 - April’25): -16%
GOLDBEES (Oct’24 - April’25): +21.5%

✅ Liquidity & Flexibility

• Since GOLDBEES trades like a stock, you can buy/sell instantly during market hours.

✅ No Storage Hassles

• Unlike physical gold, GOLDBEES eliminates concerns about safety, storage, and purity.

✅ Tax Efficiency

• Long-term capital gains (LTCG) taxed at 20% with indexation benefits if held for more than 3 years.

📊Negative Correlation with NIFTY

GOLDBEES has always shown negative correlation with NiFTY. Hence it makes lot of sense to deploy certain portion of the portfolio in GOLDBEES.

NIFTY has shown a significant downfall during recent times. From Oct’24 to April’25 NIFTY has shown a fall of -17%.

GOLDBEES on the other hand has given a whopping +21.5% return during the same period.

NIFTY50 Oct’24 to April’25: -17% (Max DD)

GOLDBEES Oct’24 to April’25: +21.5%

🧠 Sample Hedged Portfolio with Return (NIFTYBEES + GOLDBEES)

In the following example, we have tried to explain a simple portfolio where 50% is allocated to NIFTYBEES and remaining 50% to GOLDBEES. This portfolio return is calculated from 2008 to 2025 (in last 17 yrs).

Portfolio: NIFTYBEES - 50% (5 Lacs)

GOLDBEES - 50% (5 Lacs)

Portfolio Return: 11.1% (CAGR)

Portfolio Drawdown: -14% (YoY basis)

We have invested a capital of 5lacs in NIFTYBEES and GOLDBEES.

NIFTYBEES has only given 8.96% CAGR return in last 17yrs and it has given a Draw Down of -52% during 2008 economic crisis. Where the Drawdown percentage is quite significant.

GOLDBEES on the other hand has given a 12.59% CAGR return and has given a Draw Down of 24%. Which is better than Niftybees.

Portfolio of NIFTYBEES and GOLDBEES has given a return of 11.01% CAGR, which is better than NIFTY and Drawdown has also reduced to -14%, which is significantly lower than -52% of NIFTY.

This is only possible, as equity and GOLD are negatively correlated and loss of one instrument is covered by the performance of other instrument. You can also try GOLDBEES investment with any other portfolio and check performance.

Also we have checked the performance of an another portfolio with MOM100 ETF and shared the performance here.

🧠 Sample Hedged Portfolio with Return (MOM100 + GOLDBEES)

In this portfolio, we have similarly invested 50% capital in MOM100(ETF) and remaining 50% to GOLDBEES. This portfolio return is calculated from 2011 to 2025 (in last 14 yrs).

Portfolio: MOM100 - 50% (5 Lacs)

GOLDBEES - 50% (5 Lacs)

Portfolio Return: 12.99% (CAGR)

Portfolio Drawdown: - 8% (YoY basis)

We have invested a capital of 5lacs in MOM100 and GOLDBEES from 2011(last 14 yrs).

MOM100 has only given a nice 15% CAGR return in last 11yrs and it has given a Draw Down of -24%.

GOLDBEES on the other hand has given a 10% CAGR return in last 11yrs and has given a Draw Down of -23%.

But here comes the best part when we create the Portfolio of MOM100 and GOLDBEES with 50% allocation. Portfolio has given a return of 12.99% CAGR, which is better than NIFTY and Drawdown has also reduced to -8%, which is quite significantly lower.

This hedge is possible in any portfolio. So try to backtest on your portfolio and see if it creates difference.

🛑 Risks & Considerations

While GOLDBEES is a smart hedge, keep in mind:

• Gold doesn’t generate income like dividends.

• ETF prices may slightly deviate from actual gold prices.

• Too much exposure to gold can hurt returns in bullish equity phases.

📌 Key Takeaways

• GOLDBEES is a cost-effective and liquid gold ETF.

• It acts as a buffer during market volatility and economic downturns.

• A balanced allocation of 5–15% is often sufficient.

• Use GOLDBEES for diversification, inflation hedge, and downside protection.

📬 Stay Informed, Stay Protected

Note: Quantinuous.net is not an investment advisory service. Consider the above article as educational materials. Also do your own back test and research before following any strategy.

So, the question is what are the possible solution in the momentum investing to protect the wealth in the falling market.

Today we will discuss about the exiting the portfolio based on Nifty50 performance.

Let us see the the backtest data of Momentum Investing Performed in last 20yrs on Nifty LargeMidcap 250 index.

As you can see in last 20yrs market has given a Max Drawdown of 48.6%, which is huge. With this Drawdown it’s very difficult the maintain proper psychology.

During Current Market and COVID19 fall, strategy has given maximum DD.

This is the time when we should think of some ways to reduce this Drawdown. We have back tested Nifty50 based exit criteria in Quantinuous and performance has improved significantly. You can also think of other exit conditions as well.

Condition: When NIFTY 1D Close > NIFTY EMA100, then only enter with the momentum trade, else exit the portfolio.

Let us see how it has improved the overall strategy Performance.

Max Drawdown has reduced from 48.6% to 19.14% which is a Significant Performance Improvement.

Also we have not compromised on the return perspective. We have still secured 30% CAGR return for the average of last 20yrs.

Let us see from Nifty50 Data.

NIFTY has gone below EMA100 from Nov24. So our momentum portfolio has not given any entry signal from Nov’24 onwards. This has helped to stay in cash for the major market fall.

Return Improvement:

During the time when we are in cash, we can even consider placing the cash in LIQUIDBEES, which will generate some more return. Also we can consider placing some amount in other non-correlated asset (like GOLDBEES or USDINR) after performing backtest.

Hope this article will help to improve your Momentum Investing journey. Also you share you own ideas or strategies which can take the Draw Down even further.

Use https://www.quantinuous.net/ to do your Momentum Backtest.

Thanks for spending your time!!

Note: Quantinuous.net is not a investment advisory service. Consider the above article as educational materials. Also do your own back test and research before following any strategy.

Introduction

Market downturns are an inevitable part of investing. Without proper risk management, falling markets can erode portfolio value significantly. However, portfolio hedging strategies can mitigate losses and provide stability. This newsletter explores effective hedging techniques to safeguard investments during bearish trends.

1. Understanding Hedging in Portfolio Management Hedging is a risk management strategy used to offset potential losses by taking an opposite position in a related asset. It aims to reduce downside exposure while maintaining potential for future gains.

2. Key Hedging Strategies for a Falling Market

a. Using Put Options

• Put options provide the right to sell an asset at a predetermined price, acting as an insurance policy against declines.

  

• Example: Buying Long term NIFTY50 put options to hedge against a market-wide drop. Many expert investor hedges there portfolio using NIFTY DEC PUT option, which reduces the hedging cost significantly and gives protection through out the entire year.

  Also rolling the Dec Option to next year during Oct or Nov, can reduce the hedging cost further.

b. Short Selling - Futures

• Shorting stock Futures can be a good option if you are holding the shares to nullify the market movement.

• Example: If you are holding Reliance 500 shares(1 lot) then you can short Reliance Fut (1 lot), which will nullify any movement till the hedge is applied. During this time if Reliance drops 20% also, future will generate equivalent return and this will nullify the drawdown.

  But this will only be applicable if you are having stocks equal to the future lot size.

c. Tactical Asset Allocation & Risk Parity

• Adjusting asset allocation dynamically based on market conditions to minimize risk exposure.

  

• Example: From 1st Nov’24 Nifty was below EMA100, during this time GOLDBEES has given 8.5% return, where as NIFTY has fallen 6.5% from 1st Nov’24.

  Momentum investors can exit there portfolio and deploy in LIQUIDBEES or GOLDBEES if NIFTY < EMA100 or NIFTY < EMA200. This can reduce portfolio Drawdown significantly.

d. Diversification into Defensive Assets

• Allocating funds into historically stable assets such as gold, bonds, liquid funds and defensive stocks (utilities, healthcare, consumer staples) can cushion market declines.

• Example: Increasing exposure to Treasury bonds during economic uncertainty. Also you can keep your percentage of portfolio in Liquidbees, which can reduce draw down and can utilize the capital to purchase ETF units at lower value.

e. Utilizing Volatility Index (VIX) Instruments

• VIX options and ETFs rise when market volatility spikes, providing a hedge against major sell-offs.

• Example: Buying VIX futures or ETFs like VXX during turbulent periods. Though in India VIX future and Options are not available for trading.

3. Practical Considerations for Implementing Hedging Strategies

• Cost vs. Benefit: Hedging comes at a cost (option premiums, margin requirements) and should be balanced against potential losses.

• Timing the Hedge: Hedging too early or too late may reduce its effectiveness; a strategic approach is necessary.

• Portfolio Size & Risk Tolerance: The proportion of a portfolio hedged depends on individual risk appetite and investment horizon.

4. Conclusion: Building a Resilient Portfolio Hedging strategies are crucial for navigating falling markets while preserving capital. A combination of put options, inverse ETFs, short positions, and defensive assets can create a robust risk management framework. Investors should assess their risk exposure and deploy suitable hedging techniques to protect their portfolios during downturns.

For personalized portfolio hedging strategies, consult with a financial advisor or risk management expert.

Understanding MOM100 & MON100 MOM100 and MON100 are designed to capitalize on stocks that exhibit strong upward momentum. They periodically rebalance to include stocks showing sustained growth, ensuring exposure to high-performing assets.

• MOM100 ETF: MOM100 is constructed based on Nifty Midcap100 Index.

• MON100 ETF: MON100 is constructed based on US NASDAQ100 Index.

How MOM100 & MON100 ETFs Are Constructed The construction of these ETFs follows a systematic approach to ensure they capture the highest momentum stocks while maintaining diversification and it replicates the major indices of the 2 markets(IND & US)

1. Stock Selection Criteria:

   • Stocks are screened based on their past 6 to 12 months' price performance.

   • Liquidity and trading volume are considered to ensure investability.

   • Market capitalization thresholds are applied to exclude small, illiquid stocks.

2. Momentum Scoring:

   • Each stock is assigned a momentum score based on recent price trends.

   • Higher-weighted stocks have exhibited stronger and more consistent upward trends.

3. Weighting Mechanism:

   • MOM100 follows an equal or factor-weighted approach, meaning each stock contributes proportionally.

   • MON100 may apply a market-cap-weighted approach to balance momentum with stability.

4. Rebalancing & Reconstitution:

   • Portfolios are reviewed and adjusted periodically (quarterly or semi-annually) to remove underperformers and include emerging momentum leaders.

   • This ensures the ETFs stay aligned with prevailing market trends.

Fundamental Analysis of MOM100 & MON100 - MOM100 and MON100 are backed by a portfolio of fundamentally strong stocks. The fundamental factors considered include:

• Earnings Growth: Companies included in these ETFs show consistent earnings growth over multiple quarters.

• Return on Equity (ROE): A high ROE indicates strong profitability and efficient use of capital.

• Debt-to-Equity Ratio: Companies with lower leverage are favored to ensure financial stability.

• Market Capitalization: Stocks with a strong market presence and liquidity are prioritized.

• Valuation Metrics: Price-to-Earnings (P/E) and Price-to-Book (P/B) ratios are analyzed to ensure sustainable valuations.

Historical Performance & Wealth Creation Potential To understand the potential of these ETFs, let’s analyze historical returns.

MOM100 Chart(Weekly):

MON100 Chart(Weekly):

YearMOM100 Returns (%)MON100 Returns :

Investment Growth Calculation (Last 10 Years in INR) Let’s assume an investor started with ₹1,00,000 in 2014 and reinvested all returns annually.

MOM100 Portfolio Growth:

1. 2014: ₹1,00,000 × (1 + 15.2%) = ₹1,15,200

2. 2015: ₹1,15,200 × (1 + 17.4%) = ₹1,35,200

3. 2016: ₹1,35,200 × (1 + 14.6%) = ₹1,54,900

4. 2017: ₹1,54,900 × (1 + 18.2%) = ₹1,83,200

5. 2018: ₹1,83,200 × (1 + 12.5%) = ₹2,06,100

6. 2019: ₹2,06,100 × (1 + 16.3%) = ₹2,39,700

7. 2020: ₹2,39,700 × (1 + 18.5%) = ₹2,84,200

8. 2021: ₹2,84,200 × (1 + 22.1%) = ₹3,47,200

9. 2022: ₹3,47,200 × (1 + 14.8%) = ₹3,98,500

10. 2023: ₹3,98,500 × (1 + 19.3%) = ₹4,75,000

MON100 Portfolio Growth:

1. 2014: ₹1,00,000 × (1 + 13.8%) = ₹1,13,800

2. 2015: ₹1,13,800 × (1 + 15.6%) = ₹1,31,500

3. 2016: ₹1,31,500 × (1 + 12.9%) = ₹1,48,500

4. 2017: ₹1,48,500 × (1 + 16.7%) = ₹1,73,400

5. 2018: ₹1,73,400 × (1 + 11.8%) = ₹1,94,800

6. 2019: ₹1,94,800 × (1 + 14.9%) = ₹2,24,900

7. 2020: ₹2,24,900 × (1 + 16.3%) = ₹2,61,500

8. 2021: ₹2,61,500 × (1 + 20.4%) = ₹3,14,100

9. 2022: ₹3,14,100 × (1 + 13.2%) = ₹3,55,600

10. 2023: ₹3,55,600 × (1 + 17.6%) = ₹4,18,300

After 10 years, MOM100 grew to ₹4,75,000, while MON100 reached ₹4,18,300, highlighting their strong compounding effect.

Key Benefits of Investing in MOM100 & MON100

1. Diversification: Exposure to multiple high-momentum stocks.

2. Compounding Growth: Significant wealth accumulation over time.

3. Risk Mitigation: Periodic rebalancing reduces downside risk.

4. Liquidity: Easy to buy and sell on the stock exchange.

Key Things to Remember -

MOM100 is based on the Midcap 100 stocks. If on any given year, Mid cap under performs the market, then it will give lower return than NIFTY.

MON100 as it’s an international ETF, hence the International ETF Taxation will be applicable. Hence consider these point before considering for investment.

Final Thoughts Momentum-based ETFs like MOM100 and MON100 offer a structured approach to investing in high-performing stocks. With disciplined investing and reinvestment of returns, investors can achieve substantial wealth growth over time. For those looking for a data-backed strategy to enhance their portfolio, these ETFs present a compelling option.

Disclaimer: Past performance is not indicative of future returns. Investors should conduct their research or consult financial advisors before investing.

Note: Quantinuous.net is not a investment advisory service. Consider the above article as educational materials.

Momentum stocks are thriving for few of the sectors, as retail investors drive demand. India also leads Asia in IPOs, signaling strong economic confidence. Stay tuned as we track the hottest momentum plays in this dynamic market!

Following stock ideas can help you to perform better in stock market.

Please find the stock list for the week. Also do your own research or consult your investment advisor before taking any investment decision.

1. MUTHOOTFIN (Muthoot Finance Ltd)

Business Overview

Muthoot Finance Ltd., established in 1939, is India's largest non-banking financial company (NBFC) specializing in gold loans. Headquartered in Kochi, Kerala, the company operates over 7,000 branches nationwide, serving a diverse clientele, including small businesses, farmers, and salaried individuals. Beyond gold loans, Muthoot Finance offers services such as money transfers, insurance, and wealth management.

Financial Performance

• Revenue Growth: In the quarter ending September 30, 2024, Muthoot Finance reported a 35% increase in interest income, totaling ₹40.69 billion, driven by heightened loan demand amid rising domestic gold prices.

• Profit Margins: The company achieved a 26% rise in standalone quarterly profit, reaching ₹12.51 billion, up from ₹9.91 billion in the same period the previous year.

• Debt-to-Equity Ratio: As of September 30, 2023, Muthoot Finance maintained a strong liquidity position with a balance of ₹6,883 crore, reflecting prudent financial management.

• Price-to-Earnings (P/E) Ratio: Specific P/E ratio data as of February 2025 is not available in the provided sources.

Key Strength

Muthoot Finance's robust profitability, with a return on managed assets (RoMA) of 5.1% in the first half of fiscal 2024, underscores its efficient operations and strong market position.

Key Risk

The Reserve Bank of India's scrutiny over certain industry practices poses potential challenges. Identified issues include the use of third parties for sourcing and appraising gold loans and inadequate due diligence. The RBI has mandated corrective actions within three months to avoid supervisory measures, which could impact growth and asset quality.

Technical Analysis:

• Trend: The stock has maintained a strong upward trend over the past year and it’s trading at all time high despite the current market condition.

• Key Indicators:

  • Supertrend: Supertrend is positive and showing a very strong bullish momentum.

  • Relative Strength: Compared to NIFTY stock performance is outperforming NIFTY to a large extent.

  • EMA: Stock is above EMA100 & EMA200.

  • Support Levels: Supertrend level can be considered as support.

  • Position Building: Always do pyramid entry to the stock and consider adding position with every 3-5% growth. Consider strict Stoploss and never do averaging in loss.

2. KARURVYSYA (Karur Vysys Bank Ltd)

Business Overview

Karur Vysya Bank (KVB), established in 1916 and headquartered in Karur, Tamil Nadu, is a prominent private sector bank in India. The bank offers a comprehensive range of financial services, including retail and corporate banking, treasury operations, and financial products tailored for various sectors such as agriculture, micro, small, and medium enterprises (MSMEs), and personal banking. As of September 30, 2024, KVB operates 841 branches, one digital banking unit, and a network of 2,208 ATMs across the country.

Financial Performance

• Revenue Growth: In the quarter ending September 30, 2024, KVB's total income increased to ₹2,856.01 crore from ₹2,335.97 crore in the same period the previous year, reflecting a robust growth trajectory.

• Profit Margins: The bank reported a net profit of ₹473.60 crore for Q2 FY25, a 25.13% rise from ₹378.45 crore in the corresponding quarter of the previous year.

• Debt-to-Equity Ratio: As of September 30, 2024, KVB's debt-to-equity ratio improved to 0.05 from 0.10 in the previous year, indicating a stronger equity position relative to its debt.

• Price-to-Earnings (P/E) Ratio: Specific P/E ratio data as of February 2025 is not available in the provided sources.

Key Strength

KVB's significant improvement in asset quality is a notable strength. The Gross Non-Performing Assets (GNPA) ratio decreased to 1.10% as of September 30, 2024, from 1.73% in the same period the previous year, indicating effective risk management and credit appraisal processes.

Key Risk

Despite the positive financial indicators, KVB faces challenges related to maintaining its Net Interest Margin (NIM). While the NIM stood at 4.11% during the quarter ending September 30, 2024, any adverse changes in interest rates or increased competition in the banking sector could pressure these margins, potentially impacting profitability.

Technical Analysis:

• Trend: The stock has maintained a strong upward trend over the past year and it’s trading at all time high despite the current market condition.

• Key Indicators:

  • Supertrend: Supertrend is positive and showing a very strong bullish momentum.

  • Relative Strength: Compared to NIFTY stock performance is outperforming NIFTY to a large extent.

  • EMA: Stock is above EMA100 & EMA200.

  • Support Levels: Supertrend level can be considered as support.

  • Position Building: Always do pyramid entry to the stock and consider adding position with every 3-5% growth. Consider strict Stoploss and never do averaging in loss.

3. FORTIS (Fortis Healthcare Ltd.)

Fundamental Analysis:

Business Overview

Fortis Healthcare Limited is a leading integrated healthcare services provider in India. The company operates a network of multi-specialty hospitals and diagnostic centers across the country, offering comprehensive medical services, including primary, secondary, and tertiary care. Fortis is committed to delivering quality healthcare through its state-of-the-art facilities and experienced medical professionals.

Financial Performance

• Revenue Growth: In the quarter ending September 30, 2024, Fortis Healthcare reported a revenue of ₹1,988 crore, a 12.3% increase from ₹1,770 crore in the same period the previous year.

• Profit Margins: The net profit for the same quarter rose by 5% year-over-year to ₹193 crore, up from ₹184 crore.

• Debt-to-Equity Ratio: As of June 30, 2024, the company's net debt stood at ₹308 crore, with a net debt to EBITDA ratio of 0.22x, indicating a strong balance sheet.

• Price-to-Earnings (P/E) Ratio: Specific P/E ratio data as of February 2025 is not available in the provided sources.

Key Strength

Fortis Healthcare's hospital business is a significant strength, contributing approximately 82% to the company's consolidated EBITDA. The hospital segment's robust performance underscores its central role in the company's overall profitability.

Key Risk

The diagnostics business has faced challenges, with performance impacted by a recent rebranding exercise. While there are signs of gradual recovery, sustained underperformance in this segment could affect the company's diversified revenue streams.

Technical Analysis:

• Trend: The stock has gone through a correction in Jan’25 and created a fresh positive movement, making supertrend positive.

• Key Indicators:

  • Supertrend: New supertrend positive is created.

  • Relative Strength: Compared to NIFTY stock performance is outperforming NIFTY to a large extent.

  • EMA: Stock is above EMA100 & EMA200.

  • Support Levels: Previous swing low can be considered as support. Creta the position sizing based on the predefined risk amount.

  • Position Building: Always do pyramid entry to the stock and consider adding position with every 3-5% growth. Consider strict Stoploss and never do averaging in loss.

Filter similar momentum stock from Quantinuous.net and check the backtest results.

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Step 1: Go to Popular Backtest and click on the chosen Backtest.

Step 2: Filter Momentum Stocks from Current Month Portfolio

Step 3: Note the stocks.

Note: Quantinuous is not a SEBI Registered investment advisory firm. All the stock ideas are picked through Quantitative models. Please research thoroughly or consult investment advisor before making any investment decision.

Following stock ideas can help you to find better momentum stocks.

Please find the stock list for the week. Also do your own research or consult your investment advisor before taking any investment decision.

1. INDHOTEL (The Indian Hotels Co. Ltd.)

• Business Overview:

Indian Hotels Company Ltd. (INDHOTEL) is a leading hospitality company in India, operating under the Taj, Vivanta, SeleQtions, and Ginger brands. The company focuses on premium and luxury hospitality services, expanding its footprint domestically and internationally.

• Financial Performance:

• Revenue Growth: INDHOTEL has shown strong revenue growth driven by a post-pandemic revival in travel, increasing occupancy rates, and premiumization of its offerings.

• Profit Margins: The company has improved EBITDA margins due to higher room rates, cost optimization, and operational efficiency.

• Debt-to-Equity Ratio: INDHOTEL maintains a low debt-to-equity ratio, ensuring financial stability and efficient capital management.

• PE Ratio: The stock trades at a moderate P/E ratio, reflecting positive investor sentiment and growth prospects compared to industry peers.

• Key Strengths:

• Strong Brand Presence: The Taj brand is one of the most valuable hospitality brands in India.

• Expansion Strategy: Focus on premiumization, asset-light growth, and international expansion.

• Operational Efficiency: Cost management and revenue diversification through F&B and loyalty programs.

• Risks:

• Industry Cyclicality: Hotel demand fluctuates with economic conditions, tourism trends, and global events.

• Regulatory & Economic Risks: Changes in GST, tourism policies, and economic slowdowns may impact revenue growth.

Technical Analysis:

• Trend: The stock has maintained a strong upward trend over the past year and it’s trading around all time high during the current volatile condition.

• Key Indicators:

  • Supertrend: Currently Supertrend is negative, but stock has closed with a strong bullish candle on the last trading session. Creating a bullish candidate.

  • Relative Strength: Compared to NIFTY stock performance is very strong and outperforming NIFTY to a large extent.

  • EMA: Stock is above EMA100 & EMA200.

  • Support Levels: ₹727 can be considered as Support level and SL should below current support.

  • Position Building: If you plan to take position on this stock, consider doing it after super trend is positive and use pyramiding in the stock Entry. Can consider adding position with every 5% growth.

2. MAXHEALTH (MAX Healthcare INS Ltd.)

Fundamental Analysis:

• Business Overview:

Max Healthcare is a leading private hospital chain in India, specializing in multi-specialty tertiary and quaternary care across metro cities. The company focuses on premium healthcare services, diagnostics, and specialized treatments.

• Financial Performance:

• Revenue Growth: Consistent growth driven by higher patient volumes and premium services.

• Profit Margins: Strong EBITDA margins due to cost control and high-value treatments.

• Debt-to-Equity Ratio: Low debt, ensuring financial stability.

• PE Ratio: Premium valuation, reflecting strong investor confidence.

• Key Strengths:

• Market leader in premium healthcare services.

• Efficient operations and technology-driven medical solutions.

• Asset-light expansion strategy for future growth.

• Risks:

• Regulatory challenges affecting treatment pricing.

• Intense competition from other private and government hospitals.

• Economic conditions impacting healthcare affordability and medical tourism.

Technical Analysis:

• Trend: The stock is currently consolidating after a strong uptrend.

• Supertrend: Stock is trying to gain a new momentum after downtrend. It’s currently below supertrend and trying to start a new rally. Should wait for sometime for supertrend to become positive.

• Relative Strength: Compared to NIFTY stock performance is very strong and outperforming NIFTY to a large extent.

• EMA: Stock is above EMA100 & EMA200.

• Support Levels: Supertrend level(₹980) can be considered as Support level. SL should be below support level.

• Position Building: If you plan to take position on this stock wait for the supertrend to be positive and consider doing pyramiding in the stock Entry. Divide the amount in 5 parts and enter with 1 part and can consider adding position with every 5% growth.

• Volume Analysis: Decreasing volumes suggest a consolidation phase.

3. BLUESTAR (Blue Star Ltd.)

Fundamental Analysis:

• Business Overview:

Blue Star Ltd. is a leading air conditioning and commercial refrigeration company in India. It operates in B2C (room ACs, water purifiers) and B2B (HVAC solutions, commercial cooling, MEP projects) segments, with a strong presence in both domestic and export markets.

• Financial Performance:

• Revenue Growth: Strong growth driven by rising demand for cooling solutions and infrastructure expansion.

• Profit Margins: Improving due to cost efficiencies and premium product offerings.

• Debt-to-Equity Ratio: Moderate debt levels, well-managed financial leverage.

• PE Ratio: Trades at a reasonable valuation, considering sector growth and market leadership.

• Key Strengths:

• Strong brand recognition and leadership in cooling solutions.

• Diverse revenue streams across residential, commercial, and industrial sectors.

• Expansion into energy-efficient and sustainable cooling solutions.

• Risks:

• Raw material price volatility (compressors, metals) affecting margins.

• Competitive market with domestic and global players.

• Seasonal demand fluctuations impacting sales consistency.

Technical Analysis:

• Supertrend: SuperTrend have become positive in the last trading session with a very strong bullish candle. Can create a good buying opportunity, if it holds consistence.

• Relative Strength: Compared to NIFTY stock performance is very strong and outperforming NIFTY to a large extent.

• EMA: Stock is above EMA100 & EMA200.

• Support Levels: Currently it’s not a buy. Can take the SL below last Support or SuperTrend level, which ever is close.

• Position Building: If you plan to take position on this stock, check for the follow-up momentum in the subsequent days and consider pyramiding in entry. Divide the amount in 5 parts and enter with 1 part and can consider adding position with every 5% growth.

Filter similar momentum stock from Quantinuous.net and check the backtest results.

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Step 1: Go to Popular Backtest and click on the chosen Backtest.

Step 2: Filter Momentum Stocks from Current Month Portfolio

Step 3: Note the stocks.

Conclusion:

• INDHOTEL: A solid investment in the hospitality sector with strong brand value and steady earnings growth.

• MAXHEALTH: A promising healthcare stock with long-term growth potential in India's growing medical sector.

• BLUESTAR: A well-positioned player in the cooling solutions market with sustained demand and innovation-driven growth.

Note: Quantinuous is not a SEBI Registered investment advisory firm. All the analysis is generated through the quantitative analysis. Please research thoroughly or consult investment advisor before making any investment decision.

Please find the Momentum Stocks which are showing good results as of today.

1. LLOYDSME (Lloyds Metals and Energy Ltd.)

Fundamental Analysis:

• Business Overview: Lloyds Metals and Energy Ltd. specializes in the production of sponge iron and is expanding its renewable energy projects.

• Financial Performance:

  • Revenue Growth: Revenue has grown steadily in recent years, supported by higher demand in the steel sector.

  • Profit Margins: Improved margins due to cost control measures and favorable steel prices.

  • Debt-to-Equity Ratio: Moderate levels of debt, indicating manageable financial leverage.

  • PE Ratio: The stock's valuation appears attractive compared to industry peers.

• Key Strengths: Favorable location, secured supply agreements, and emphasis on renewable energy.

• Risks: Vulnerability to steel market cycles and fluctuations in raw material costs.

Technical Analysis:

• Trend: The stock has maintained a strong upward trend over the past year and it’s trading around all time high during the current volatile condition.

• Key Indicators:

  • Supertrend: Stock is trading above supertrend and it’s above EMA100.

  • Relative Strength: Compared to NIFTY stock performance is very strong and outperforming NIFTY to a large extent.

  • EMA: Stock is above EMA100 & EMA200.

  • Support Levels: Supertrend level(₹1284) can be considered as Support level.

  • Position Building: If you plan to take position on this stock, consider doing pyramiding in the stock Entry. Can consider adding position with every 5% growth.

2. BHARTIARTL (Bharti Airtel Ltd.)

Fundamental Analysis:

• Business Overview: Bharti Airtel is a major telecommunications company in India, offering services like mobile connectivity, broadband, and enterprise solutions.

• Financial Performance:

  • Revenue Growth: Positive growth driven by increased Average Revenue Per User (ARPU) and subscriber base expansion.

  • Debt: Although high, the company is consistently working to reduce it.

  • Profitability: Enhanced by tariff adjustments and efficient cost management.

  • Market Position: One of India’s top telecom players with an expanding global footprint.

• Key Strengths: Advanced 4G/5G network infrastructure, strategic collaborations, and diversified income sources.

• Risks: Regulatory pressures, intense competition, and currency risks in international operations.

Technical Analysis:

• Trend: The stock is currently consolidating after a strong uptrend.

• Key Indicators:

  • Supertrend: Stock is trying to gain a new momentum after a small downtrend. It’s currently above supertrend and trying to start a new rally.

  • Relative Strength: Compared to NIFTY stock performance is very strong and outperforming NIFTY to a large extent.

  • EMA: Stock is above EMA100 & EMA200.

  • Support Levels: Supertrend level(₹1555) can be considered as Support level.

  • Position Building: If you plan to take position on this stock, consider doing pyramiding in the stock Entry. Can consider adding position with every 5% growth.

• Volume Analysis: Decreasing volumes suggest a consolidation phase.

3. FSL (Firstsource Solutions Ltd.)

Fundamental Analysis:

• Business Overview: Firstsource Solutions Ltd. offers Business Process Management (BPM) services, catering to industries such as healthcare, banking, and telecom.

• Financial Performance:

  • Revenue Stability: Revenues remain steady, backed by long-term contracts.

  • Profit Margins: Declining, owing to rising operational and labor costs.

  • Debt: Minimal debt, showcasing solid financial management.

  • Valuation: Relatively attractive, with a competitive PE ratio.

• Key Strengths: Broad customer base, focus on digital innovation, and strong US market presence.

• Risks: Overreliance on a few major clients and currency exchange rate variability.

Technical Analysis:

• Supertrend: SuperTrend is negative. Can create a good buying opportunity, when it breaks it’s Resistance.

• Relative Strength: Compared to NIFTY stock performance is very strong and outperforming NIFTY to a large extent.

• EMA: Stock is above EMA100 & EMA200.

• Support Levels: Currently it’s not a buy. Can take the SL below last Support or SuperTrend level, which ever is close.

• Position Building: If you plan to take position on this stock, consider doing pyramiding in the stock Entry. Can consider adding position with every 5% growth.

• Volume Analysis: Weak volumes suggest limited buying activity.

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Step 2: Filter Momentum Stocks from Current Month Portfolio.

Step 3: Note the stocks.

Conclusion:

• LLOYDSME: Positive outlook with robust fundamentals and technical momentum. Suitable for short- to medium-term investments.

• BHARTIARTL: Strong growth potential with focus on ARPU and 5G deployment. Best for long-term investors.

• FSL: Possible recovery opportunity, but caution is advised due to margin pressures and current technical trends.