Introduction
Finding the right stock to invest in can feel like searching for a needle in a haystack. With thousands of listed companies,
how do you narrow it down? That’s where stock screeners come in. A stock screener is a powerful tool that filters stocks
based on parameters like price, market cap, P/E ratio, or technical indicators. In this blog, we’ll break down how stock
screeners work and how you can use them to discover winning investment opportunities.
What is a Stock Screener?
A stock screener is an online or app-based tool that allows investors to filter stocks based on specific criteria. For example,
you can screen for companies with a P/E ratio below 20, or stocks with an RSI under 30 to find oversold opportunities.
👉 In short: screeners save time and help investors focus on stocks that match their strategy.
Why Should You Use a Stock Screener?
⏳ Saves Time – Instead of manually going through 1,500+ NSE companies, you get a short, relevant list.
🎯 Strategy-Oriented – Apply filters that align with your investment or trading style.
📊 Data-Driven Decisions – No relying on hearsay; screeners give you factual insights.
🚀 Discover Hidden Gems – Identify undervalued stocks before they trend.
Types of Stock Screeners
1. Fundamental Screeners
These focus on financial metrics like earnings, book value, debt ratio, market capitalisation, and ROE.
✅ Best for long-term investors who analyse company fundamentals.
2. Technical Screeners
These use indicators like RSI, MACD, moving averages, and Bollinger Bands.
✅ Best for traders looking for entry/exit signals.
3. Custom Screeners
Some advanced tools (like those in MarketYakk) let you combine both fundamental and technical filters for a balanced view.
How to Find Winning Stocks Using a Screener
Step 1: Define Your Strategy
Are you a long-term investor (focus on fundamentals)?
Or a short-term trader (focus on price movements & indicators)?
Step 2: Apply Filters
Examples:
Value Investing → Low P/E, high ROE, low debt.
Growth Investing → High revenue growth, strong margins.
Momentum Trading → RSI between 40–60, price above 50-day SMA.
Step 3: Shortlist & Research
The screener gives you a list. Now, deep dive into each company’s financials, news, and sector trends before making a
decision.
Example: Using a Screener in Action
Imagine you want to find undervalued mid-cap IT stocks.
Set Market Cap filter: Mid-cap
Set P/E filter: Below sector average
Add Revenue Growth filter: Above 15% YoY
Add RSI filter: Below 60 (not overbought)
💡 Result: A shortlist of IT companies that are growing but not overpriced, perfect for further analysis.
Conclusion
Stock screeners are no longer just for professional traders—they’re essential tools for anyone serious about investing. By
applying the right filters and aligning them with your strategy, you can quickly identify high-potential stocks and make
data-backed decisions.
👉 Want to try it yourself? MarketYakk comes with powerful stock screeners and real-time scans to help you find the right
stocks faster.