Finding multibaggers with price action

Usually, most articles about finding the elusive multibaggers focus around financial metrics- growth rates, valuations etc. In this post, we are going to take a look at using only technical indicators and price patterns to identify potential multibaggers.
Starting with the prices as of end of May, we go back 5 years and look for stocks which have gone up at least 10x, or 1000% total. From NSE, we get 176 stocks. This is a fairly high number, with the total number of listed stocks at about 1500-1600. Some names are very well known- EICHERMOT, DALMIABHA, EVEREADY, CERA, AJANTPHARM. Limiting our search to the stocks from the present day Nifty 500, we still get 92. Here are some of the popular ones on monthly charts-

EVEREADY


AJANTPHARM


LAOPALA


CANFINHOME


CEATLTD


A common theme in all these charts, is the stability of the price trend outside of the Bollinger Bands. In this case, we have used 20 day 1 standard deviation Bollinger Bands. Going through the entire list, you will find that in most cases, the price has stayed consistently outside of the Bollinger Bands(20,1). This will obviously not be a sufficient criteria for a stock to be a multibagger, but in combination with other indicators, this is a good way to evaluate if a stock has potential. We've put together a watchlist with all the 10x+ stocks here- 10x Multibaggers. Every month, we'll add stocks that are up 10x in trailing 5 years. To get automatic updates as stocks are added or removed, tap the Follow button.