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'Buy high, sell higher': 18 stock ideas; 4 key selection criteria for momentum investing - BusinessToday

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  Published in Stocks and Investing on Tuesday, September 30th 2025 at 2:33 GMT by Business Today

Momentum Investing Made Simple: A 2025 Snapshot of 18 Stock Picks and 4 Winning Criteria

In a bustling market that is increasingly favoring data‑driven strategies, BusinessToday’s latest piece—“Buy high, sell higher: 18 stock ideas, 4 key selection criteria for momentum investing”—offers a timely blueprint for investors looking to ride the crest of rising stocks. Published on September 30 2025, the article distills complex quantitative insights into a pragmatic playbook, complete with a curated list of 18 Indian equities that the authors believe embody the “buy‑high‑sell‑higher” mantra.

What Is Momentum Investing?

Momentum investing is rooted in the principle that assets that have performed well in the recent past will continue to outperform in the near future, whereas those that have lagged will keep underperforming. Rather than chasing fundamental undervaluation, momentum traders focus on price trends, trading volume, and other market‑sentiment metrics. The BusinessToday piece underscores that momentum is not a speculative fantasy; it has statistical backing, with studies showing that the “buy low, sell high” adage can be inverted into “buy high, sell higher” when executed with rigor.

Four Cornerstones of the Selection Process

The article identifies four criteria that together filter the universe of stocks into a shortlist of high‑probability winners. The authors argue that these four lenses—price performance, earnings dynamics, valuation, and volatility—together reduce exposure to noise and isolate genuine momentum signals.

The article offers a simple spreadsheet‑like workflow: screen all NSE‑listed equities, filter for those that satisfy the price performance criterion, then rank them by earnings momentum. From there, trim the list based on valuation thresholds and finally weed out the most volatile outliers. The end result is the 18 names the authors recommend for a 2025 momentum rotation.

The 18 Momentum‑Ready Stocks

Below is a condensed version of the curated list. Each tick is chosen not just for its recent price run but for the confluence of earnings strength and reasonable valuation.

Note: The figures above are illustrative and drawn from the article’s tables; exact values may vary slightly.

Each of these names also exhibits a favorable volatility profile: their standard deviation over the past year is below the sector average, suggesting they are less likely to suffer sudden “stop‑loss” events that could wipe out momentum gains.

How to Execute the Momentum Play

The BusinessToday piece doesn’t just hand you a list—it also supplies a step‑by‑step execution plan. The authors recommend a “buy‑high, sell‑higher” approach where the initial entry point is at or near the 52‑week high, and the exit is triggered when:

1. Relative Strength (RS) declines by 10% – a relative indicator that the stock is losing momentum relative to the market.
2. Price touches a 50‑day moving average – a simple technical filter that signals a potential trend reversal.
3. Implied volatility spikes above the 70th percentile – an early warning of a risk‑off environment.

This dual trigger system is designed to limit downside risk while still allowing the trader to capture a sizable portion of the upside.

A Look Beyond India

While the article is India‑centric, the underlying methodology is universally applicable. The authors provide a quick link to a Bloomberg report that highlights global momentum leaders for the same period. This supplementary reading underscores that the same four‑criteria filter can surface winners in the U.S., Europe, and emerging markets alike.

Take‑Away Points for the Savvy Investor

1. Momentum is a science, not a guess – By anchoring selections to concrete price, earnings, valuation, and volatility metrics, you transform intuition into discipline.
2. Buy where the market is already confident – The “buy‑high” principle eliminates the need for expensive research on undervalued stocks; the trend does most of the work.
3. Exit when the trend shows signs of fatigue – A disciplined exit strategy is as important as entry, preventing “buy‑high, sell‑lower” scenarios.
4. Keep an eye on macro‑sentiment – Links to the BusinessToday article’s macro section warn that high‑momentum stocks are more sensitive to market sentiment and policy changes.

Final Thoughts

In a market that is constantly shifting under the influence of earnings releases, policy announcements, and global geopolitical events, momentum investing offers a robust framework for capturing short‑to‑medium‑term gains. BusinessToday’s article does a commendable job of distilling the theory into actionable steps and a concrete list of 18 equities that, according to the authors, are primed for 2025. Whether you’re a seasoned professional or a novice looking for systematic entry and exit points, the “buy‑high, sell‑higher” playbook provides a structured, data‑driven path to potentially outperform the market.