Stock Screener – Features, Benefits & Example

A stock screener is a digital tool that helps investors filter shares based on criteria like price-to-earnings ratio, volume, or sector. It simplifies the process of identifying stocks that match financial or technical conditions.

To understand stock screeners, start with their basic function: they are online tools that filter stocks based on specific conditions set by the user, helping investors focus on companies that meet their chosen criteria.

To appreciate how screeners support analysis, consider these typical functions:

• Filtering by valuation ratios (e.g., price‑to‑earnings)
  

• Screening by price change or volume momentum
  

• Selecting based on dividend yield or book value
  

• Applying technical indicators (e.g., moving averages, RSI)
  

• Sorting by sectors, market cap, or delivery ratios

Understanding stock screener features is key to informed investing in India:

NSE‑Specific Filtering

Many screeners provide NSE dedicated filters:

• Delivery percentage (stocks delivered versus traded)
  

• Circuit filter status (upper/lower limits)
  

• 52‑week high/low price markers
  

• Sector classification per NSE tag

Technical and Fundamental Filter Options

Screeners often support:

• Fundamental metrics (e.g., P/E < 20, ROE > 15%)
  

• Technical indicators (e.g., 50‑day moving average above 200‑day MA, RSI < 30)
  

• Price volume breakouts or support/resistance zone filters

Combining these allows holistic stock evaluation.

Customisable Alerts and Watchlists

Some platforms offer:

• Email or SMS alerts when a stock meets specific criteria
  

• Saved filter templates for regular use
  

• Watchlists for follow‑up and manual review

Visual Charts and Export Options

Key useful features include:

• Embedded candlestick and line charts to test patterns
  

• Exports to CSV or XLS for offline analysis
  

• Back‑testing of historical filter performance

Transitioning from features to value, these tools offer clear benefits to investors managing their own portfolios:

Efficiency and Focus

Screeners help cut through noise by filtering thousands of stocks in seconds, focusing attention on those that meet defined criteria.

Objectivity in Selection

They offer discipline—filter results remove emotion and friction, ensuring every stock meets fixed parameters rather than gut feelings.

Strategy Testing

Screeners allow testing of simple or custom strategies against historical market data, helping refine patterns or ratios before manual research.

Improved Entry and Exit Points

By flagging levels like oversold (RSI<30) or breakout zones, screeners provide structured support for timing trades or monitoring shifts.

To deepen understanding, here is how someone could use a stock screener in practice for NSE‑listed stocks:

Step 1 – Set Fundamental Filters

Begin by defining baseline health metrics:

• P/E ratio < 20
  

• Return on Equity (ROE) > 15%
  

• Market capitalisation > ₹500 Crore

Step 2 – Add Technical Indicators

Next, apply technical filters for trend confirmation:

• 50‑day moving average > 200‑day moving average
  

• RSI < 30 (indicating oversold status)

Step 3 – Apply NSE‑Specific Scrutiny

Finally, enrich the shortlist with market context filters:

• Delivery ratio > 60%
  

• Exclude stocks at circuit limits to avoid halted trades

Step 4 – Review Results and Create Watchlist

After filtering, add the shortlisted stocks to a watchlist for further review or analysis.

Example Outcome

A sample output might look like this:

Here’s how to approach the decision of selecting a stock screener logically:

Define Your Investment Goals

Your objective will dictate what filters you need.

Check for Market Coverage

Ensure the screener supports Indian stocks and exchanges like NSE and BSE.

Filter Variety and Customisation

Look for screeners that let you fine-tune variables like EPS growth, PE ratio, ROCE, or debt-to-equity.

Real-Time Data Availability

A quality screener should offer near real-time data to support time-sensitive decisions, especially for active traders.

Ease of Use

Choose screeners with clean dashboards and helpful visual cues.

Integration with Other Tools

Some screeners offer charting, watchlist integration, or news feeds alongside scanning. These can offer a comprehensive view.

Making the most out of your stock screener requires a few practical habits and best practices:

Start with Broad Filters

Begin by screening wide (e.g., market cap or sector). Then gradually narrow down your picks using specific metrics.

Validate with Fundamentals

Even if a stock appears promising on the screener, always verify it through fundamental analysis and other sources.

Save Your Screens

Most screeners allow saving of custom screens. Use this feature to revisit or update strategies regularly.

Avoid Over-Filtering

Adding too many strict filters can eliminate potentially good opportunities. Aim for balance.

Stock screeners streamline the investment process by filtering stocks based on set criteria, making research more focused and efficient for both new and seasoned investors.

This content is for informational purposes only and the same should not be construed as investment advice. Bajaj Finserv Direct Limited shall not be liable or responsible for any investment decision that you may take based on this content.