Investment Opportunities In 52-Week High Stocks!
Dalal Street Investment Journal|December 20, 2021
Markets when in uptrend invite lot of momentum investors to participate in the rally. Buying stocks that are close to their respective 52-week highs is a one-way momentum that investors identify as investing opportunities. But does this strategy always work? How does one use the 52-week high data effectively? Yogesh Supekar discusses the pros and cons of investing in stocks at 52-week high levels.
Yogesh Supekar
Investment Opportunities In 52-Week High Stocks!

Studying and analysing stock market data is one of the most important aspects of investing. Often enough, investors complain about the lack of data to make informed decisions. The data that can add value to investment decisions is not readily available, according to a majority of investors. Says Hitesh Oberoi, a new investor, “I opened a demat account in April 2021. I am a new investor in the market. My market app with the brokers provides me lot of data but honestly speaking, I do not understand most of the data that is flashed in the app. There is derivatives data, top gainers and top losers’ data, indices data and then there is data on price volume breakout and stocks that have hit the upper circuit.”

“While the derivatives data is absolutely foreign to me, the top gainers’ and losers’ data is something I find of no great use. The price volume breakout data is something I am still exploring on how best to use it as it is not very easy data to profit from. I find it easy to use the daily 52-week high data. I simply note down the stocks that have hit fresh 52-week high and then analyse the investment prospects. My logic is that if a stock is making fresh 52-week highs there must be something good happening in the company. By focusing on the set of 52-week high stocks I am able to focus on stocks that are trending and are promising to outperform the markets. It makes my investing life easier as I can focus on select stocks only and not worry about thousands of stocks that trade on the bourses,” he adds.

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