Below is the list of ratios that I use to identify fundamentally good companies. You can tweak the ratio figures as per your comfort and try as many permutations and combinations as you want, it is always fun to play around with scanners by tweaking the numbers. You can input the exact same query mentioned below to run a scan:

ROCE > 10 AND
ROE > 10 AND
D/E < 1 AND
Sales 3yr CAGR > 10 AND
Net Profit 3yr CAGR > 10 AND
Cash Conversion Cycle < Cash Conversion Cycle 5Yr Avg AND
FCF Yield > 0 AND
OPM > 10 AND
NPM > 6 AND
Dividend Yield > 0

The market is at an interesting juncture, it seems like an excellent opportunity to add on fundamentally good companies

How did I identify such companies using a Funamental+Technical Approach:

Nifty Analysis:

Nifty broke the previous low of Aug 31 - 19921 but is now trading at an interesting juncture having 3 support levels as mentioned in the chart below

Nifty Outperformers / High Relative Strength:

I ran a Performance scanner on RZone to find companies still trading above the lows of Aug 31 Total Market. Impressively, only 171 companies remain 3% above their 31/08/2023 lows, demonstrating the strength

Filtering companies with good fundamentals:

I now made a group of these 171 companies in Rzone in order to run a fundamental scan in Radar

Ran a scan in Radar and among the 171 companies, approximately 10% (18 companies) have reported Qtr Rev and PAT growth of 10% YoY:

Note that, as of October 25, not all have disclosed their Q2 FY24 results

If we run the scan on all the companies not limiting them to only the latest results then 75 companies get filtered out of 171

These companies now are Relatively stronger compared to Nifty and also have reported good numbers

Exciting news, Radar users!

We're thrilled to introduce our new feature, the Result Calendar Now, you can easily search for the result dates of any listed company in India and sort them by specific groups. Plus, get a snapshot of quarterly results for published reports.

With the Result Calendar on Radar, you'll have all the information you need at your fingertips. No more hunting for result dates across different platforms. It's the ultimate convenience for investors, financial analysts, and anyone interested in staying up-to-date.

Here's what you can do:

Search for Result Dates: Find upcoming result dates for Indian companies quickly and effortlessly.

Sort Results by Groups: Customize your search by sorting results based on industry sectors, market capitalization, and more.

Bonus Feature: Below the calendar, get a snapshot of quarterly results for companies that have already published their reports. Stay informed with key financial indicators and performance highlights.

We're excited to empower you with the Result Calendar feature, making it easier than ever to track results and stay in the loop on Indian business news.

Access the Calendar under the Tools section of Radar with the name Result Calendar & Snapshot

Radar - https://radar.definedgesecurities.com/

Just spotted Bikaji - the chart's intriguing, and those robust quarterly figures make it even more exciting!

Hello everyone, I wish you a Happy Navratri and a happy weekend

We are thrilled to announce that we introduced two advantageous features in Radar this week:

1. Historical annual ratios along with Median (red & green highlights are in comparison with Median), also click on the chart to see the trend

2. Added Price and CapEx (gross block) CAGR to the Performance tab

Read more about the features here- https://www.definedgesecurities.com/new-features/radar/

@Soujanya Holkar yes nice suggestion, will add a market cap filter in matrix

CENTRALBK has a nice chart formation, breaking out of the 45° trendline intact since December 2022

The stock is also on the verge of breaking out on the RS chart of CENTRALBK/Nifty PSU index

Key Triggers:

• The company is engaged in the business of manufacturing of auto components including auto electrical parts and its accessories and caters to both domestic and international markets.

• The company is undergoing big expansions which shall help the company to clock great numbers
  
  

Technicals:

• UNOMINDA has a great chart formation on the 1% x 3 PnF chart, the stock is on the verge of giving a triple top buy signal on closing above 637.

• The stock has also shown an interesting pattern of Bear Trap above the 10SMA which is also a sign of bullishness
  

https://forum.definedgesecurities.com/post/2301

Adani Stocks are on fire lately, let's check the free float for all Adani Companies

What is a Free Float?

Free Float refers to the shares out there in the wild – the ones held by the everyday folks, the Retail Public, ready to be traded. It's like the chunk of ownership that's not in the hands of the bigwig promoters and institutions. These are the shares that are available for trading in the market.

Lesser the Free Float, Swiftier the moves in stock price

Check out the chart above – it's pretty clear that a significant chunk of ownership in most Adani companies is in the hands of the big players, the promoters, and institutions. There's not much free float, meaning not a whole lot of shares are up for grabs from the general public

Now let's check how the prices have moved in the last 2 weeks:

Adani Total Gas, with the least available shares for public trading, has experienced the most substantial surge in the past two weeks. The stock has nearly doubled in value within this short timeframe.

Less Free Float is a double-edged sword, when the tides turn, stocks with less free float also tend to fall rapidly

Hello sir,

1. The returns in Peer comparison are Annualised returns
2. The incremental NAV and Return columns were added by mistake, it will be removed
3. We are working on the benchmark returns in the trailing return page, we will get it rectified soon

Sorry for the inconvenience caused

ITC forms an ABC pattern similar to the previous pattern in the chart. Seems ripe for the next leg of up move now

SIRCA has an attractive chart setup on the 0.25% x 3 PnF chart with a favorable risk:reward, change in polarity can also be observed on the chart

The company grew its Quarterly sales and profit YoY by 26% and 53% respectively.

IIFL's chart shows an appealing arrangement on the 0.25% x P&F chart, and the following are the patterns that have developed on it:

1. Bear Trap FT
2. 45-degree trendline breakout
3. Super Pattern DTB
4. Horizontal range breakout since March'23
5. PMOX indicator turned green to Bullish Momentum from Overbought

Yes, volumes drying up and the stock is consolidating in a tight range after bouncing back from the 21EMA, looks interesting

EPL updated chart-

Had written about it in the weekly Newsletter-

AHLUCONT has a nice chart setup with multiple open vertical counts between 680 to 700

The company is also fundamentally strong and has posted All-time high Quarterly sales and All-time high Quarterly profit

KSB founded in the year 1960, is headquartered in Pune in the state of Maharashtra. It specializes in Centrifugal End Suction Pumps, High-Pressure Multistage Pumps, Industrial Gate, Globe, Check Valves, Submersible Motor Pumps, monobloc & mini monobloc pumps, Hydro pneumatic Systems, and control valves. Today the KSB in India is a leading international manufacturer of pumps, valves, systems, and control valves.

The chart has an ABC pattern formation

The company also posted a stellar set of result

JWL first count achieved, and has given a swift smooth up move of 18% in less than 2 weeks

List of companies that have posted All Time High Quarterly Sales, All Time High Quarterly Profit, and the stock price is within 5% of All Time High

You can get this list of companies by using the Matrix tool in Radar - https://radar.definedgesecurities.com/

JWL has a 7-column ABC formation on the 0.25% x PnF chart with a favorable risk reward. The stock has been taking multiple supports of the 10SMA as well.

CCL has an interesting chart setup on the point & figure chart, the stock has been taking multiple supports on the 45° trendline and now has given a short-term triangle breakout with the vertical counts suggesting targets as 779 and 896, the pattern would be invalid on closing below the DBS at 635 making it a very rich R:R

CARYSIL's 0.25% x 3 PnF chart displays an appealing pattern. Crossing the 680 mark would break a trendline that has been in place for 14 months

SANGHVIMOV looks interesting

The company also posted ATH Quarterly Sales and second highest Quarterly Net Profit in the latest quarter

FII have increased its stake from 0 to 1.45% in the last two years and is still in an increasing trend

SURYAROSNI's 1% x 3 chart displays an appealing arrangement, indicating that the stock has emerged from a prolonged consolidation period. There is also a cluster of vertical counts at 1146.

Great Analysis! Thank you for sharing, even I am tracking the company. Very interesting times going forward

One more exciting find is that an Ace investor - Akash Bhanshali has been increasing his stakes in the company for over a year now

@Ab said in Sudarshan Chemicals:

I am not able to show how bad the numbers were in FY23

I think you meant FY13 numbers, currently, we are providing Financials data from 2017 onwards

MAXHEALTH has an interesting chart setup

As @Prashant Shah in his article with moneycontrol mentioned that strong momentum in counters usually gives bear traps which are followed by a trend continuation, MAXHEALTH seems to be ready for a continuation

You can search for low-float companies by using scanners in Radar, I am attaching the list of low-float companies out of the Nifty 500, interestingly only 32 companies have a low float out of the Nifty 500 companies.

What is a low-float company?
Low-float companies are those with a low number of shares outstanding. In simpler words, most of the company's ownership is held by either the promoters or the FII or the DII and the Public/Retail participants hold only a few portion of the company.

In this example, I have considered companies with less than 5% ownership with the Public

Completed the first count of 592 earning a return of almost 15% in less than a month

@ARUN MOHAN Hello, you've got it right. The parameters I mentioned earlier are meant to find companies that are already doing well. They can help us check their technical strength and maybe start trading with them. Just to clarify, these parameters are for finding companies that are already growing, not necessarily those that are undervalued.

So, companies that are still performing strongly even when their industry is down will meet these criteria. And the values that I have entered above are not rigid and rather are very lenient, so I don't think the companies will be missed out if they are performing despite industry in a downtrend

GMDC has an interesting chart setup

Earnings Season is now over for the Q2FY24, below is the query you can use to filter out companies that have posted good numbers along with improved margins

I have made the scanner public - https://radar.definedgesecurities.com/newScanner/789

Or you can make changes and tweak the numbers in the below query as per your taste:

Quarterly Net Profit Growth YoY>10 AND
Quarterly Sales Growth YoY>10 AND
Quarterly OPM>OPM 4Qtr Back AND
Market Cap>100

• You can save the scanner results as a group and use RZone for Technical Scans. One of my favorites is looking for stocks with Relative Strength. I usually run the Top-Down Approach scanner to find stocks in this group that are stronger than both Nifty 50 and Nifty 500.

FSL has recently breached the 45° trendline from January 2022 and broken out of the horizontal consolidation phase that had been in place since April 2022

The company is to post Quarterly results on August 2nd, keep track of it

Companies Where All Three (Promoters, FII, DII) Amped Up Their Stakes Last Quarter

It is usually a lethal and game-changer combo when Promoters/Owners, Foreign Institutions, and Domestic Institutions all add to their stakes in a single quarter in any company

COROMANDEL has given a clean range breakout after bouncing from 200EMA multiple times. Q1FY24 Results tomorrow

New Feature in RADAR!

We are thrilled to introduce an exciting new feature that is set to elevate your fundamental analysis experience on our platform. Say hello to "Perks and Pitfalls" – a proprietary tool designed to provide you with invaluable insights into Indian companies like never before.

"Perks and Pitfalls" is your go-to resource for an in-depth evaluation of Indian companies. It offers a comprehensive list of both the strengths (perks) and weaknesses (pitfalls) of each company, making it easier than ever to assess their overall health and potential.

• How Does It Work? : Our team of experts has meticulously curated a list of pros and cons for each company in our database, covering various aspects of their operations, financial health, Shareholding Insights, Past Performance, Financial Ratios and industry standing. These insights are now just a click away, allowing you to quickly understand the critical factors that may influence your investment decisions

• Introducing the Proprietary Scoring System : But that's not all! We've taken it a step further by introducing a proprietary scoring system that condenses all the perks and pitfalls into a single, easy-to-understand score. This score will serve as a reliable gauge, helping you determine whether a company is a sound investment or one to approach with caution. It's your shortcut to smarter, more informed investment decisions. Companies having score between 0 and 25 will be labelled as Gambles, score between 26 to 50 will be Middlers, and the companies with score above 50 can be considered as Aces

• Perks and Pitfalls Score as a parameter under scanners : You can now filter out companies using the perks and pitfalls score as a parameter in Scanners (for example: Perks Pitfalls Score > 50)

• Why "Perks and Pitfalls" Matters
  Saves You Time: No more sifting through pages of information. Get a holistic view of a company's strengths and weaknesses at a glance
  Enhances Decision-Making: Make informed investment choices based on a company's overall score.
  Risk Mitigation: Identify potential pitfalls to avoid unpleasant surprises down the road.
  Invest with Confidence: Use our insights to confidently invest in companies that align with your financial goals

We are committed to continually improving your experience on Radar, and "Perks and Pitfalls" is just the beginning. We believe that this feature will empower you to make more confident and strategic investment decisions.

We can't wait to hear your feedback on "Perks and Pitfalls." Your input will be invaluable as we continue to refine and expand our offerings.

Explore the "Perks and Pitfalls" feature today and let us know what you think. Your success is our success.
https://radar.definedgesecurities.com/

WELSPUNIND has a beautiful chart setup, the company is to post results today

On the candlestick chart as well the stock is looking attractive

Entire Midcap IT space is getting strong

AWHCL has a good chart setup after breaking out of the bearish trendline of almost 2 years

I will add more to the insight:

Here is the list of small-cap companies that qualify for the following parameters, which can be kept an eye on since they have posted good quarterly numbers and are also trading within 15% of 52week high as of Oct 24

Market Cap < 8000 AND
Market Cap > 250 AND
Quarterly Net Profit Growth YoY > 15 AND
Quarterly Sales Growth YoY > 15 AND
Quarterly OPM > OPM 4Qtr Back AND
Price Within Fifty Two Week High < 85

@Neha V Hello, We have implemented the Piotroski Score in Scanners in our latest release

Dear @Pankil Lukkad, we appreciate your feedback. The P&P score considers data from various timeframes, including daily, quarterly, and annual figures. You can check the score during each quarterly results season.

Yes, Score above 50 can be considered as a fundamentally sound company

Muthoot Finance looks attractive at CMP 1129

The candlestick chart has a flag pattern and the stock is in a tight consolidation zone breaking of which may give a good quick move.

The stock looks attractive on PnF chart as well

GREENLAM has a nice setup on the 1% x 3

The company also has good fundamentals and has posted All-time high Quarterly Sales and All-time high quarterly net profit in the Q4 of FY23

@Deven Shah @Sidharth Dassani
You can check this link out, it has a detailed explanation of Gangotri - https://shelf.definedgesecurities.com/technical-analysis/vayda-bazar-patterns/vayda-bazaar-ni-chavi/

started moving now, keep a watch

Just released: Funda-Techno Research Report on EPL Ltd! Discover the world's largest manufacturer of laminated plastic tubes, serving FMCG & Pharma industries.

Sustainable packaging focus, strong revenue diversification, and growth potential.

Read the report here: https://insight.definedgesecurities.com/research/epl-limited-funda-techno-research-report/

Bear Trap FT in ARVINDFASN, a very low-risk high-reward setup after pattern retest

@Nishshkumar Jaani Sir we have come up with a scoring based on Fundamentals, you can check the score of each company individually or can make a scanner query example - Perks Pitfalls Score > 70 which will show companies that score only above certain marking

Read more about the feature here - https://www.definedgesecurities.com/new-features/radar/

MANINFRA has an interesting chart setup

Results to be published on July 25th

Hello @Gaurav-Garg,

Nifty 750 is a good universe to select stocks for the long term as it will also include micro-caps,

you can use the below query to identify fundamentally good companies:
D/E < 1 AND
ROCE 5yr Avg > 20 AND
NPM 5yr Avg > 6 AND
Net Profit 5yr CAGR > 15 AND
Net Profit 5yr CAGR > Sales 5yr CAGR AND
PEG < 2

Yes this is from a scanner that I use for Quarterly results, here is the query that I used:

QuarterlySalesGrowthYoY>20 AND
QuarterlyNetProfitGrowthYoY>20 AND
MarketCap>500 AND
D/E < 0.75 AND
PromoterHolding > 0 AND
FIIHolding > 5 AND
DIIHolding > 5

After saving the output of this scanner as a group, I ran a "Follow through Bullish" scanner in RZone on the same group

Today is the last day to avail the shares of JFSL by buying Reliance Industries' shares

@Tv Hello sir, there was a glitch in the scanner parameter for EPS growth, and it has been fixed now. Sorry for the inconvenience caused

You can now run the same query and you will get your favourable scanner output

Oh, interesting! Thanks for sharing

Updated chart, gave a smooth up move of almost 10% in 3 days

Haha even I am tracking this

Breakout on ratio chart (GODFRYPHLP/Nifty 50) as well

NRBBEARING has a nice chart setup on the 0.25% x 3 PnF.

The company has good fundamentals and the promoters have been increasing the stake for the last 3 quarters. The promoters bought shares in the company in the last week too

DAAWAT has a great setup of huge anchor columns followed by an ABC pattern along with the price bouncing back from the 10SMA

The company also posted great results for Q1FY24

The first count achieved in less than 2 weeks, a smooth up move of ₹100

@Vishwanath Nagaraj Yes, these counts are still active and open

TANLA getting strong again, interesting chart

@Soujanya-Holkar Hello, we have implemented the market cap filter in Matrix

All ply/laminates stocks are strong including Greenply, Greenpanel, Greenlam, Centuryply

GRASIM has a beautiful chart on the 1% x 3 PnF, and will move out of the zone after a long consolidation. The chart has also shown a change in polarity i.e. the resistance has now turned and acted as a support

TANLA updated chart. Up ~9% today

Taking a broader perspective of the market, it appears that Nifty may face challenging conditions ahead. This observation is based on the early indications of other asset classes such as Commodities, Government Yields, and USDINR outperforming Nifty. When the ratio charts of these alternative assets compared to Nifty consistently trade above the MAST indicator on all charts, it would confirm a short-term peak in Nifty.

Additionally, the breakouts in several stocks are not maintaining their upward momentum and are instead retracing, which could be another early sign of weakness in the market.

@P Raju it is D-Smart line

Point & Figures:

The stock has an amazing chart setup with a low risk high reward making it a R:R of 1:3

Quarterly Results:

The company has posted amazing numbers for the Q2FY24

Perks & Pitfalls:

Shareholding:

The FIIs and the DIIs have been increasing their stakes consistently while the Retailers are reducing

The markets are as still as a statue at the moment. So, let's guess the below-attached charts of the same company

SEBI & SC giving a hard time to Adani Haters

SEBI assured the Supreme Court they're not dragging their feet, having wrapped up 22 out of 24 Adani cases. The remaining 2 just need some intel from foreign regulators. Solicitor General Tushar Mehta hinted at possible further investigations based on new info.

Despite concerns about market volatility from short-selling, the Supreme Court backed SEBI, rejecting claims of an inadequate investigation. They emphasized that probes can't solely rely on media reports.

The court brushed off the Hindenburg report, refusing it as evidence and denying a probe into major financial institutions. Post this, Adani group stocks like Adani Enterprises, Adani Power, and Adani Total Gas all saw over 6% intraday gains, joining the celebration.

Our Technical charts expert @Brijesh-Bhatia says he might have identified a potential emerging trend @Brijesh Bhatia said in Emerging Trend on Adani Stocks – Says our Exclusive Indicator:

Adani Group stocks as they surge with bullish momentum, triggered by the recent Supreme Court development in the Adani-Hindenburg case. As of 10:00 am, Adani Stocks dominates the Top 10 gainers for the day, showcasing a promising start.

Source: Rzone, TradePoint

Our Leading Indicators Says.....
Our cutting-edge proprietary indicator, the Adaptive RSI, points towards a renewed bullish wave across most Adani Stocks. Exclusively available to our Definedge clients in the indicator section, this tool sets the stage for informed investment decisions. Signup here for Definedge Securities

We're thrilled to offer our existing Definedge clients to access to this exclusive indicator. Elevate your trading experience – it's available now in the indicator section.

Let's dissect the charts of Adani Enterprises (top left), Adani Ports (top right), Adani Green (bottom left), and ATGL (bottom right).

Observe the two lines on the chart? That's the Adaptive RSI (ARSI) indicator, a unique feature available only on TradePoint. Ready to leverage this powerful tool for your trades? Just open an account with us.

The ARSI isn't your typical indicator – it factors in both momentum and volatility in its calculations. A bullish crossover coupled with widening indicates the emergence of a strong bullish trend, and it's unfolding in Adani Group stocks. Seize this opportunity, as highlighted by our distinctive indicator.

Don't miss out on the potential gains – ride the Adani wave with confidence and TradePoint's exclusive Adaptive RSI indicator.

Note: We are highlighting the emerging trend, as signalled by the indicator, and this should not be considered as a recommendation.

@Deven Shah The price is approaching DTB point but hasn't triggered a DTB signal yet. The Super Pattern will only be considered valid once a confirmed DTB signal occurs. You might have identified this stock by scanning for "Super Pattern Bullish Probable" in the scan results.

Why the Management of any company (especially Banks) plays an important role:

The management of the two giant private banks has changed in the last 5 years, which changed the complete trajectory of their businesses as well as their stock price returns

ICICIBANK changed its management in late 2018 after the Chanda Kochhar fiasco:

The management of HDFCBANK changed in 2020-21 when Mr. Aditya Puri stepped down from the CEO position after serving the bank for over 25 years.

Ratio chart of ICICIBANK divided by HDFCBANK shows the sheer outperformance of ICICIBANK since they changed the management

Will this trend continue?

Historically, the valuations of HDFCBANK have stayed at a premium over ICICIBANK valuations, but there were very few times when the valuations of ICICIBANK enjoyed the premium over HDFCBANK, the current scenario is one of those times

Only time will tell if HDFCBANK can have a comeback or if ICICIBANK will come out as the new leader

@Deven Shah yes sir, it is MRF

Super Pattern is one of the most effective patterns in PnF charts

What makes it effective?

1. Low risk setup
2. Riding the already strong momentum

MAZDOCK has formed a super pattern formation on the 3% x 3 PnF chart

CENTRALBK updated chart, moved over 42% in just a month, crazy rally in PSUs

UNOMINDA has already moved more than 60% in less than 3 quarters, and is till looking great

On the Fundamentals front as well, the company reported the Highest Ever Quarterly Sales and the Highest ever Quarterly Profit in the Q4 of FY24

New Entries and New Agreements:

BBTC boasts an exceptional chart configuration on the 0.25% x 3 PnF chart. It displays an ABC pattern with a long consolidation phase. Breaking the trendline is likely to lead to a quick upward momentum

Riding the same boat as you sir @Kaushik-Akiwatkar

https://forum.definedgesecurities.com/post/1139

One can read a detailed Funda-Techno Research Report on Route Mobile here:
https://insight.definedgesecurities.com/research/route-mobile-funda-techno-research/

Gold updated chart

Gold/Nifty ratio chart has given a fresh breakout of the trendline since March 2023

Breakout on the ratio chart signifies the Relative Strength of the numerator (Gold) as compared to the denominator (Nifty 50)