Top momentum stocks worth considering

Momentum stocks are high risk and high returns proposition. Here we have listed top momentum stocks that are worth considering.

Markets have been quite volatile since October last year and are trading in a range-bound fashion with a downward bias. Post a volatile session yesterday, markets ended lower losing 69.65 points (0.4%) to close at 17,206.65. The broader market underperformed Nifty 50 and Sensex. Market breadth on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) was negative.

Although the Nifty 50 jumped back furiously last Tuesday and covered the down gap created last Monday, there is still a probability that Nifty would retest the recent lows of 16,809. This is amid the global markets showing weakness. If there is any sort of elevation in the ongoing Russia-Ukraine crisis, then there are chances that the Nifty might even touch its 50-week Exponential Moving Average (EMA) at 16,445 levels. However, presently it is trading at its 61.8% Fibonacci extension which is placed at 16,981 levels. Therefore, having a stock-specific view is advisable at the current juncture.

Momentum stocks are those that carry high risk and high reward profile. So, as the markets are having a negative bias, it makes complete sense to invest in these momentum gems. Having said that, if we look at the Nifty 200 Momentum 30 index then it is overweight on IT stocks that form 27.31% of the index followed by financial services and consumer goods that is weighted around 11.09% and 10.92%, respectively.

Below we have listed the top 10 momentum stocks worth considering.