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admin@wealthjot.ai reposted
W

The big story right now is that strong, healthy momentum is very hard to find in the Nifty universe.

Sector health — % of stocks above their 200-day average
Oil & Gas
100%
Metal
87%
Healthcare
70%
Energy
64%
Auto
53%
Media
44%
Banking
43%
Infra
42%
Financial Services
40%
FMCG
27%
Consumer Durables
25%
Realty
22%
Market breadth — stocks above their 200-day average
95 advancingMixed99 declining ▼
Market rotation — leaders vs laggards (vs equal-weight basket)
LeadingWeakeningLaggingImprovingHDFCBANKICICIBANKINFYTCSRELIANCELTAXISBANKMARUTISUNPHARMABHARTIARTLKOTAKBANKTATASTEEL

Our strict search for powerful, stable uptrends came up nearly empty. This is a signal from the market itself, telling us to be cautious. Only one stock, Asian Paints, even comes close to fitting the bill, and it still has one important box left to check.

What We're Looking For: A Healthy Trend Checklist

To find stocks with strong momentum, we look for three specific signs. Think of it like a health check for a stock's price trend. We need all three to be positive.

  1. A clean, rising price structure. We want the stock's current price to be above its 20-day average price. We also want that 20-day average to be above the 50-day average. And finally, the 50-day average needs to be above the 200-day average. This Price > SMA20 > SMA50 > SMA200 setup is like a team of runners all in the right order, from fastest to slowest, confirming the trend is strong at every level.
  1. Strong but not exhausted buying. We use a tool called the RSIRelative Strength Index, which measures buying and selling pressure. A score between 55 and 75 tells us there's a lot of buying happening, but the stock isn't so popular that it might be ready for a sudden drop.
  1. A powerful trend. Another tool, the ADXAverage Directional Index, measures the strength of the trend, not its direction. A score above 25 tells us the price is moving with conviction, not just drifting aimlessly.

The Results: A Cautious Market

Out of the entire list of major stocks we scanned, zero passed all three of our health checks.

This is the most important finding. It means that right now, the biggest stocks in the market are generally not in strong, healthy uptrends. Most are either in a downtrend, moving sideways, or their recent upward moves are weak and lack conviction. This is a yellow flag for the market's overall health.

The Closest Contender: Asian Paints (ASIANPAINT)

While no stock was a perfect match, Asian Paints came the closest. It's the one stock worth watching to see if it can pass the final test.

  • Close Price: ₹2748.1
  • RSI: 74.4 (Strong buying pressure, right at the edge of our range)
  • ADX: 41.1 (A very powerful, high-conviction trend)
  • 52-Week Position: Down 7.96% from its high.

Why it's interesting: Asian Paints passed our tests for buying pressure (RSI) and trend strength (ADX) with flying colors. These numbers show that its recent move up is the real deal.

The one warning sign: Its moving averages are not in the perfect order yet. While its price is above its 20-day and 50-day averages, its 50-day average (at ₹2456.36) is still below its 200-day average (at ₹2538.75). For the long-term trend to be truly healthy, we need to see that 50-day average climb above the 200-day level. This is the key condition to watch.

The 'Almost There' Watchlist

A few other stocks passed one or two of our checks, but had more significant flaws. They show why it's so important to check all three signs of health.

StockHealth Check 1: Price StructureHealth Check 2: RSI (55-75)Health Check 3: ADX (>25)The Story
ASIANPAINT⚠️ Almost (SMA50<SMA200)✅ Yes (74.4)✅ Yes (41.1)Strong move, but long-term trend is still healing.
AXISBANK❌ No✅ Yes (67.0)❌ No (20.2)Has buying interest, but the trend has no power.
LT⚠️ Almost (SMA50<SMA200)✅ Yes (64.9)❌ No (13.2)Looks okay, but the ADX shows it's just drifting, not trending.
NESTLEIND❌ No❌ No (42.5)✅ Yes (34.0)Was in a strong trend, but is now pulling back sharply.

This table shows that even if one indicator looks good, others can reveal a fatal flaw in the trend's health.

The Bottom Line

  1. Momentum is scarce. The fact that our strict screen found no perfect candidates is a message from the market. Be cautious, because strong, reliable uptrends are not common among large stocks right now.
  1. Watch Asian Paints for confirmation. It's the strongest of a weak bunch. The key signal to watch for is its 50-day moving average crossing above its 200-day moving average (currently at ₹2538.75). That would be the final all-clear for its long-term trend health.
  1. Use this list to learn, not to trade. This analysis is a filter, not a "buy" button. The goal is to build a watchlist of stocks with healthy price action. When the market is healthy, this list will grow. Right now, its small size tells us to wait and watch.

Frequently Asked Questions

### Why is the order of the moving averages so important?

Think of them as showing the trend's speed over different time frames. The 20-day is a sprint, the 50-day is a jog, and the 200-day is a long-distance run. You want the sprinter ahead of the jogger, and the jogger ahead of the long-distance runner. If they get out of order, it means the trend is losing steam or reversing.

### What does it mean if the ADX is low?

A low ADX (below 25) means the stock is in a "choppy" or "sideways" market. The price might be wiggling up and down a lot, but it isn't making any real progress in one direction. A high ADX is a sign of a smooth, powerful trend that is easier to follow.

### So, should I buy Asian Paints?

This analysis is not a recommendation to buy or sell anything. It's a health report on a stock's price trend. Asian Paints has a strong trend right now, but it also has one clear warning sign (the 50-day average is below the 200-day). A trader might wait for that to resolve before considering it further.


As of 2026-06-19. This is for educational purposes and is not investment advice.