Momentum Stocks: These 5 stocks are showing relative strength and should be on your watchlist!

The European markets closed on a positive note while the US markets are heading to a positive beginning for the week with Dow Jones Industrial Average trading higher by more than 250 points on an intraday basis and NASDAQ Composite up by more than 200 points.  

BSE Sensex gained on Monday by 226 points or 0.41 per cent while the BSE SmallCap Index slipped by 1.65 per cent. Few stocks managed to gain momentum on Monday and trade with bullish bias as indicated by RSI and Bullish Stochastic Crossover.  

RSI above 70 is considered bullish while a bullish stochastic crossover reflects strong momentum in prices. Following stocks are reflecting RSI levels of 70 and higher while also reflecting bullish stochastic crossover: 

1. Adani Transmission 

 2. Bajaj Finserv 

 3. Varun Beverages 

 4. Nestle  

5. L&T Technology  

Bullish Stochastic Crossover happens when the %K line crosses over the %D line. 

What is interesting to note is that Bajaj Finserv, Nestle and L&T Technology Services made a fresh 52 week high on Monday.  These stocks should be on momentum investor and trader's radar.