Finding promising shares can be a mammoth task. The sheer number of companies in the market makes it difficult to zero down on a good asset. As BSEIndia states, the premium collected has grown by 68% in FY24 as compared to FY23. The market witnessed an increase in registered investors and turnovers this year. But how do these beginners find a good asset to invest in?
This is where a stock screener India can be a valuable tool in streamlining your search and focusing on companies that align with your investment goals.
Join us in this piece as we take a look into the features that you cannot compromise on while choosing a stock screener.
What is the share screener, and how does it work?
These valuable tools help you sort and identify assets by inputting factors into your investment strategy. Since an individual cannot physically analyse every company listed in the market, this application helps you identify stocks that might bear fruit in the long run.
Major brokerage firms in the country have created their screener apps for the demat account holders so that they can access the profit-bearing assets.
While analysing, the share screener considers various fundamental and technical aspects to provide a reliable output.
Reliable tools contain the three following components:
- An elaborate database of all the companies listed on NSE and BSE
- A set of variables which will be useful in conducting technical and fundamental analysis
- A digital screening platform which will render results based on the variables you enter
Features to look out for while selecting a share screener
The economic survey of July 2024 revealed that most investors who entered the stock market may have a higher risk appetite. Although their appetite might be more, it is important to take measured steps to stay afloat in this segment. This is where the screener applications like Research 360 serve as an invaluable tool. Here are the things you must look out for when selecting one.
Fundamental analysis features
- Financial ratios
Look for screeners that allow you to filter stocks based on such ratios. It might include P/E, P/B, or dividend yield.
- Profitability
This variable will be useful in measuring a company’s metrics, such as its net or operating profit margin.
- Debt levels
Assess a company’s financial health by filtering stocks based on debt-to-equity and interest coverage ratios.
- Growth
Growing stocks can be identified using filters for revenue earnings and book value growth.
Technical analysis features
Charting tools are a necessity to grow in the stock market. Therefore, you must ensure that your screener stock offers one. It must include candlesticks, lines, and bar charts.
A wide range of technical indicators, such as moving average, relative strength index, etc, are necessary to analyse price trends and momentum.
Some screeners may offer tools to automatically identify chart patterns such as head and shoulders, triangles, etc. When using such tools, be sure that they have pattern recognition.
Other features
- The criteria mentioned above are non-negotiable when you settle for a stock screener. However, apart from these, there are some additional features that you must look out for.
- Customisable screens give you the ability to create and monitor your investments.
- Access to real-time stock prices, market news, and more will help you make informed decisions.
- Some tools in India may offer back-testing capabilities, allowing you to test the effectiveness of your screening criteria on historical data.
- Consider tools that integrate with other investment platforms, such as brokerage accounts or portfolio management, for enhanced efficiency.
Bottom Line
You can select a tool that suits your investment needs by carefully evaluating these features and comparing the available options.
In the present market, reputable stock screeners like Research 360 stand out. They offer comprehensive metrics that are invaluable for Indian investors. With these, you can conduct an in-depth analysis and integrate it with other Motilal Oswal services for a successful investment outcome.
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