Top stocks in FMCG sector

5 years, 6 months agoComments closed

screener tutorial

Very often, we are asked by investors how to find top stocks in a particular sector/index/industry for a holding period of atleast 2-3 years. At techpaisa.com, we specializes in making money technically but techpaisa screener has the capaibility to filter fundamentally strong stocks in a particular sector as well. As an example, how you can find top stocks in FMCG sector using tools on techpaisa.com for free.

Basic difference between trading fundamentally strong stocks and technically strong stocks is that your holding period changes. When you trade fundamentally then you are expecting that the company will post strong financial results and overall markets will rally and you are prepared to hold stock for a period of at least 2-3 years. However, when you trade technically, your holding period is mostly less than 1 month and you don’t really worry about financial results posted by company.

Index/Sector Discovery

Figure out the index or the sector in which you want to find the best stocks in the long-term. This step is very easy if you know one stock from the sector/index you are looking for. For example, from FMCG sector, ITC is one of the well-know stocks. Search for ITC on techpaisa.com and go to ITC stock page. In the top corner, you can see ITC is part of FMCG-Food-and-Beverages (FMCG-FnB) which is a sub-sector of broader Conumer Goods sector. Also, scroll down to see that ITC is part of various indices. We suggest you to note the most specific index which is CNXFMCG. So we have figured that we want to find fundamentally strong stocks which are good for long-term in index CNXFMCG or sector Consumer Goods. Since consumer goods (contains 50 stocks) sector is broader than FMCG, we should use CNXFMCG (comprises 15 stocks) in the screener.

Finding Top Stocks

After identifying the sector or index, now we use techpaisa screener to find good stocks in long-term. We suggest you read screener tutorial before proceeding further. We will discuss two methods of finding 2 methods. One is completely fundamental and in the other we mix long-term moving average with fundamental indicators like PE ratio.

Method 1

We are going to use “PE Cheap” filter and index as CNXFMCG (Click here to access the filtered stocks). If you use this filter, stocks are sorted in increasing P/E ratio, which means that cheap stocks come first. Moreover, we also make sure that last 3 quarters of the stock have been positive Earning Per Share.

Method 2

In the second method, we will just add one more filter in the last screener which is that stock price is above 200 Day Moving Average. When stock price is above 200 DMA, its an indicator that stock is in a long-term uptrend (Click here to get filtered stocks).

Here, we explained how to find fundamentally strong stocks in FMCG sector which can give good returns in 2-3 years period. Similarly you can find best stocks in other sectors for the long-term.

Stay tuned for latest updates:

Happy Investing!

Techpaisa Team.

Stock Screener

6 years, 3 months agoComments closed

screener nse tutorial

We are pleased to introduce our own stock screener. You can access it here and use it for free. A stock screener is a tool to filter stocks based on various technical and fundamental criteria.

At techpaisa, you can filter stocks based on following technical criteria:
  • Near 200 SMA: If current stock price is within 1% range of 200 Day Simple Moving Average. Same filter for 20 and 50 Day SMA.
  • Above/Below 200 SMA: If current stock price is above/below 200 DAY SMA. Same filter for 20 and 50 Day SMA.
  • RSI Oversold/Overbought: If RSI is indicating that stock is oversold/overbought.
  • MACD Bullish/Bearish Crossover: See here to know about MACD.
  • MACD Bullish/Bearish Centerline Crossover
  • Bollinger Bands squeezing/squeezed: See this tutorial to understand bollinger bands.
  • ADX Trending: See here to know about ADX. It’s a measure whether a stock is trending or not.
Following fundamental criteria are supported:
  • Sector: You can use this filter to compare stocks from a given sector.
  • P/E (Price-to-Earnings Ratio): If you use this filter, stocks are sorted in increasing P/E ratio, which means that cheap stocks come first. Moreover, we also make sure that last 3 quarters of the stock have been positive Earning Per Share.
  • Traded in Futures: Whether futures for that stock are traded are not.
  • Promoter Shareholding: More the promoter shareholding, better the stock.
  • Absolute beta: View this tuorial for a brief introduction of beta.
  • Market Capital: Filter high market capital stocks usign this filter.
Our stock screener can be used in many interesting ways. We list some of the screens which we find interesting:
  • Stocks near 200 SMA and above 200 SMA and above 50 SMA and above 20 SMA and traded in futures: This screen filters all stocks above 200 Day SMA, 50 SMA and 20 SMA and which are close to 200 SMA. Stocks above 200 SMA, 50 SMA and 20 SMA are considered to be in an uptrend. And when a stock in uptrend comes near 200 SMA, then 200 SMA acts as a strong support for that stock and it is a good time to go long in that stock. Similarly, you can use this screener to find stocks in a downtrend and near 200 SMA. You can even apply ADX trending filter to refine the results.
  • Stocks with Cheap P/E and in education: This screener will give you all stocks in Education sector with cheap price-to-earnings ratio. We suggest whenever you apply P/E filter, you should choose a sector because P/E ratio of two stocks from different sectors can’t be compared.

Please let us know if you have any more suggestions for filters.

Stay tuned for latest updates:

Techpaisa Team.