52 week high

What is the stock market or share market?

The stock market is a broad term that includes all the institutions or participants required for the successful issuing, buying, and selling of securities amongst investors. It is a marketplace where investors can remotely perform transactions of buying and selling various financial instruments amongst each other. In India, we have two active stock exchanges, the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE), which are major components of the stock market.

• Stock exchanges: A stock exchange acts as a mediator that facilitates the transaction of securities between the buyer and seller. It is a platform on which companies can issue securities, allowing investors to trade in those securities for various investment durations.
• Securities: Securities refers to various kinds of financial instruments that investors can buy or sell amongst each other through a stock exchange, such as NSE and BSE. Securities in the stock market include stocks, futures and options contracts, and many more.

What are 52-week high stocks?

With over 5000 stocks listed on stock exchanges, picking the right share for investment becomes a complicated task. Thus, there are various tools, such as technical indicators, that assist investors in choosing the right set of stocks for investing in the stock market. A common technical indicator used by investors to trade or invest is the 52-week high.

52-week high stock is a primary technical indicator that helps traders choose those shares that are trading at their 52-week high price. In simple language, a 52-week high is an indicator that refers to those stocks whose prices have reached their highest price levels in a period of the past 52 weeks or 1 year.

• 52-week high: It refers to the highest price of a stock in the past year or 52 weeks.
• Technical indicators: These refer to tools usually used by stock market traders to identify and trade in various types of securities within the share market. Technical indicators are derived mathematically based on past prices and a company's financial matrices.

What does a 52-week high price of a stock indicate?

The price of a share is influenced by various factors, which may lead to an upward trend, leading a stock price to reach its 52-week high. To understand 52-week high shares, let us look at various indications or conclusions that investors can derive from a stock that is trading at its 52-week high.

1. Investors confidence: A 52-week high stock indicates that investors are optimistic about a company's performance and, hence, are buying its shares to benefit from a potential price appreciation in the future. Basically, it means there is high demand for the shares of a particular company, which led it to become a 52-week high stock.
2. Occurrence of a favourable event: A 52-week high price is a result of increased demand for the share of a company which is due to the possible occurrence of an event or news that is in favour of that company. This creates a positive sentiment amongst the investors, leading to increased buying of shares.
3. Higher liquidity: A 52-week high stock conveys a positive message to investors about the liquidity of a share, which means that a particular share trading near or above its 52-week high has high liquidity and can be easily bought and sold in the market.
4. Indication of strength: When a share nears or crosses its 52-week high price, it indicates to the investors about the strength of the share to sustain these price levels for a certain period because a 52-week high share means the share has crossed its previous resistance levels and is trading in an upward trend. Thus, it means that the share is trading in a bullish trend and may sustain this trend in the future also.

• Resistance level: It refers to those price levels or price zones that a share is not able to break because of enough supply of shares at these price levels, which keeps the prices down. Resistance levels are formed when sellers do not allow the buyers to buy enough shares of a particular stock to push the price above a particular level.
• Upward Trends: Share prices in the stock market usually move in a trend that helps investors to analyse the performance of a share in a particular time frame. An upward trend is one such trend that refers to a price movement during which a share price keeps rising and making new highs for a sustained period.
• Bullish: A bullish trend refers to a positive sentiment amongst investors for the stock market as a whole, economy, or sector. Investors can identify a bullish trend by looking at market indices such as Nifty 50 or Sensex. These indices assist investors in analysing the overall momentum of the stock market.

How to identify 52-week high stocks

1. Stock screeners - Stock screeners are a very useful tool for identifying a category of stocks based on certain criterias for easy identification of the best possible investment avenue. Through the use of screeners, investors can filter out 52-week high stocks and can choose the right set of stocks for investment.
2. News and media sources - A 52-week high is an important indicator of a stock's performance, and therefore, it is always a hot topic in financial news and media channels. Hence, you can identify 52-week high stocks from numerous news channels and media sources that provide authentic information about the stock market on a regular basis.
3. Price charts - A person with an understanding of price charts can use them to analyse the trend of a share and thus can identify a stock with an upward movement that is nearing its 52-week high.

What are the benefits of investing in 52-week high shares

Investors should invest in 52-week high stocks for the following benefits:

1. Growth potential: A 52-week high stock suggests a positive momentum in a stock, which indicates that investors are optimistic about the performance of a particular stock. Thus, these stocks may show a positive growth potential in the future and can create wealth for the investor.
2. Portfolio performance: Including 52-week high stocks in a portfolio can assist investors in enhancing the overall portfolio performance due to the growth potential of a 52-week high stock for future price appreciation.
3. Ease of transactions: A stock that is near or above its 52-week high usually has higher liquidity, which enables investors to buy and sell such stock easily without affecting the price much.

How can you use Univest to identify 52-week high stocks

Univest is India's leading stock market recommendation platform that provides you with the best stock market recommendations for investing in the stock market for various investment durations. Univest today has a portfolio of 30 lac+ users, who receive daily stock market tips for investing in the equity, futures, and options segment.

Univest boasts an experienced team of SEBI registered research analysts who collectively have 75+ years of experience in market research and analysis, and they ensure that Univest users receive high-quality stock market recommendations. The research analysts of Univest are not only focused on providing recommendations for making timely entry, but they also provide exit recommendations to investors so that they can exit their bad investments in a timely manner and decrease their potential losses.

Along with providing stock market recommendations, Univest is determined to make Indian investors well-informed decision-makers. Therefore, it also offers high-quality content for its users through blog posts, social media posts, and webinars. This content is very helpful for investors who are looking to learn about the stock market and its various aspects.

Univest offers share market recommendations and other services through its tech-enabled mobile application that can be downloaded on both Android and IOS. Along with stock market tips, the users of Univest also get access to AI-based research tools through which they can perform research and self-analysis for an investment opportunity.

Amongst all the tools available on the Univest app, premium screeners are very useful for investors to filter out stocks based on predetermined criteria, which allows them to scan and pick the right stock for investment. One such screener is the 52-week high share screener, which enables users to filter out the top 30 stocks that are trading at their 52-week high.

The 52-week high share screener provided by Univest ensures that investors can easily filter, analyse, and choose the best stock for investment.

To access this screener, users must follow the below steps:

1. Download and complete the signup process for the app
2. After the signup process is completed, open the Univest app and locate the screeners section at the bottom of the home screen
3. Click on the screener option, and an interface with various screeners will be shown
4. Scroll down on the screen, and you will find the 52-week high screener under the head of general market screeners
5. Click on the 52-week high screener, and you will be able to see a list of the top 30 stocks that are trading at their 52-week high

• Univest is India's leading stock recommendation platform.
• It has a wide user base of over 40+ lac users
• Stock market tips are based on the research of SEBI-registered research analysts
• The user gets access to premium screeners such as a 52-week high share screener share on the Univest app