This is the percentage change in the company’s stock price minus percentage change in Nifty over the previous 52 weeks.


As can been seen from the above table, if the returns on the stock is more than Nifty returns, then the output is positive. If the stock’s returns is lower than the Nifty returns the output is negative.


Price momentum is the rate of change in price of a particular stock. Momentum investing is a strategy that tries to understand the existing trend in the market and attempts to capitalize on the same. So if a momentum investor feels that the bull run in the market will continue he/she will buy stocks which have outperformed the index. If he/she feels that the market is about to enter bear phase, then it makes sense to sell stocks that have under performed the index.