When we think about a single-day gainer and an uptrend stock, the classic tale of the hare and the tortoise comes to mind. While the hare makes sudden gains, the tortoise slowly and steadily gets about its business, eventually winning the race. The same is true of a single-day gainer and a true uptrend stock. Which one to pick is the question.
What is a single-day gainer?
Single-day gainer stocks, as the name suggests, tend to rise dramatically over the course of a day, with no real indication of long-term growth. They often show in today’s top gainers. These spikes could be due to company announcements, product breakthroughs, an impressive earnings report, or simply a rumour of a potentially favourable deal in the works. If a well-known, high-net-worth investor buys the stock, that too can drive the price up by driving demand.
Take Sugal and Damani Share Brokers Ltd., for example. On 30 October 2025, it rose 20% to ₹109, with no concrete news. No deals, no announcements, nothing. In such cases, you must look at its moving averages, volume of shares traded, and sectoral strength.
The stock is currently below its 100-day moving average, and there has been no news of any change in the overall sector. However, increased buyer activity has pushed the stock to its upper circuit. With no sustained momentum, this is a classic case of a single-day gainer. Now, if you jump in, there’s no saying where the stock will move. Tomorrow, investors might sell their stock to book profits, bringing the price back down, leaving you with losses on your investment.
What makes a true uptrend stock?
Uptrend stocks don’t make significant gains over a single trading session, but they keep gaining over a longer period of time – backed by strong fundamentals.
What do these ‘fundamentals’ include?
Consistent year-on-year profit growth, high return on equity, high margins, low debt-to-equity ratio, and stable cash flows, amongst others.
The stock price being above its 50-, 100-, and 200-day moving averages is another indicator of a true uptrend stock. True uptrend stocks are generally part of a sector that is performing well and are consistently bought by large investors.
Let’s look at Larsen & Toubro (L&T) – a leading Indian multinational conglomerate primarily involved in engineering, procurement, and construction (EPC). The stock has been on a rise, with a price rise of 21% in the last 6 months and 10% in the last month. It increased 3% on 29th October 2025, due to a strong Q2 performance, increased orders, and sectoral tailwinds. Despite an extended monsoon, it reported a 45% year-on-year growth in order inflow.
Strategies for traders
How can traders identify a single-day gainer from a true uptrend stock?
- Patience – Don’t buy a stock simply because it ran up today. Wait for concrete news or official announcements, and see if the price holds up over a few days.
- Moving averages – Look at stocks above their 50-, 100-, and 200-day moving averages. Stocks that are consistently above their moving averages tend to keep rising.
- Sectoral tailwinds – Look at how the sector is performing, in general. Stocks in well-performing sectors tend to remain in an uptrend.
- Manage risk – Set a close stop-loss to minimise your losses. If the stock rises, use trailing stops and book your profit. Only risk what you can afford to lose.
- Big investors – Follow big investors or foreign investments, as those stocks tend to keep rising.
Conclusion
Single-day gainers can give profits, but they need constant attention and a fair bit of luck. Identifying single-day gainers before they rise needs immense market knowledge, intuition, and courage. However, uptrend stocks are steady, consistent, and reliable. They have clear indicators.