A share market or stock screener is a software tool that allows you to set criteria (filters) so that only stocks meeting all or some of them appear. For example, you might set ‘P/E < 20’ and ‘ROE > 15% and only see stocks satisfying both. Good screeners allow dozens or even hundreds of filters, covering fundamentals such as ratios, growth, and profitability; technicals, including momentum and trend; and company health. Let’s discuss some best filters you can try.
Best Filters for Market Screeners
Here are some of the best filters you can try on a market screener:
Volume Surge
Utilise the volume surge filter to identify stocks in which trading activity has surged. An increased trading volume relative to the average indicates heightened buying or selling interest.
This indicates the early signs of institutional involvement before the emergence of price action. When combined with price action, the volume surge filter helps pinpoint stocks that are preparing for a breakout or reversal.
RSI Divergence
The RSI divergence filter helps you catch momentum reversals before they occur. When price makes a new high but the RSI forms a lower high, it signals weakening momentum despite rising prices.
Similarly, a lower low in price with a higher low in RSI shows a rebound. However, this filter works best in liquid mid and large-cap stocks, where technical signals hold reliability.
Block Deal
Block deals involve the purchase or sale of shares worth over ₹10 crore in a single transaction between institutional buyers and sellers. These are executed through a special trading window on stock exchanges.
Tracking block deals today filter gives you insight into what large investors are doing. A series of high-value buy-side block deals indicates accumulation by mutual funds or foreign institutional investors. You can add this as a screener filter to identify stocks receiving institutional confidence.
Delivery Volume
The delivery volume filter is for trades that involve actual ownership changes, not mere speculation. A high delivery volume shows that the investor is confident in retaining the position, not exiting the trade within a day.
You can review the delivery volume trend over the course of a week to ascertain if investor confidence is being sustained. For example, if a stock shows consistent price growth and an increasing delivery percentage, it signals strong conviction.
Promoter Pledge
The promoter pledge filter analyses risk in fundamentally sound companies. If a promoter pledges a large percentage of their holdings, it could indicate financial stress. Scanning for an increasing pledge percentage enables one to avoid stocks that are vulnerable to sudden price declines due to margin calls.
On the other hand, if the promoter pledge is falling, it suggests that the company is improving its financial health or corporate governance.
Earnings Momentum
The earnings momentum filter identifies firms experiencing continuous profit acceleration over several quarters. You can search for companies that show growing, emerging earnings per share and stable profit margins.
Stocks that experience this level of profitability generally attract institutional investors and result in sustained price performance. By scanning for both earnings growth and revenue growth, you can exclude companies that are only growing due to cost reductions.
Debt Decline
The debt decline filter looks at whether or not companies are improving their balance sheets through both repayment and/or restructuring. Look for consistent quarterly debt declines rather than a one-time drop.
Companies that experience declines in debt and, at the same time, experience earnings growth, are usually “re-rated” by the market. This debt decline filter is more useful in cyclical sectors, such as metals or infrastructure, where signs of deleveraging indicate recovery strength.
Cash Flow
The cash flow filter distinguishes between companies that generate real cash and those that show only paper profits. Look for stocks with positive operating cash flow growth over several quarters.
When operating cash flow exceeds net profit consistently, it reflects a firm’s capability of funding expansion without depending on external borrowing.
Conclusion
Using well-chosen filters in a screener share market helps you sift through thousands of companies and focus on promising ones. Combine fundamental, valuation and technical filters judiciously, adjust thresholds thoughtfully, and always validate the output qualitatively. With discipline and practice, your screening becomes a powerful tool in your investment process.