In this post we will discuss how to shortlist stocks on your own without any difficulties. The stock selection criteria would be on the low volatility and price movement.
What I meant by low volatility is that the price of the stock has not much fluctuated in the past 1 year. By checking this we will ensure that the capital that we deploy in the stock market is safe and secure. At the same time, it also gives us moderate returns in the short-term.
The second thing we will look at is the price movement on the upward side. This means that the price of the stock should have moved upward side in last 1 year. This is known as low volatility investing or momentum investing.
How to Shortlist Stocks?
As discussed above, we will use two criteria for shortlisting momentum stocks. For doing so we will use data from NSE and value research online websites. There are many stock screeners available for free but for this analysis, we will use NSE and Value Research data.
- We will go to
NSE website Click on the product tab. - Then we will click on the Indices
- In the Indices, we will click on the current market reports
- Then click on the view all monthly reports
- Download Market Capitalisation Nifty 50 and Nifty next 50 as shown in the below image.
Once you have downloaded these 2 files, please open them both and combine the data of both the file in one file. You will now have a list of 100 stocks in one excel file in the same format. These are the top 100 stocks of NIFTY. You can call it NIFTY 100 list.
Put a filter in the excel file on the volatility % column. Sort it on ascending order and you will get the low volatility stocks on the top. Now you have a list of low volatility stocks in the ascending order.
Now go to ValueResearchOnline website.
Click on the stock selector tab on the lest sidebar. Select NIFTY 100 index as the filter. As we have taken NIFTY 100 stocks from the NSE website. Click on the 1 year return to sort the data from high return to low return.
Now pick the top stocks from the list. You now have two criteria ready to shortlist stocks. The value research data will tell you that the stock has given a steady return in last one year that too without much volatility.
We want stocks that have given returns in last one year without much of a volatility. This will ensure that you invest in the steady stocks with good returns track record in last one year.
So you now have two files ready with you. One is high last 1 year return and second is low volatility stocks in last one year. Combine these two files and find top 10-15 stocks as per your wish. Thats your shortlisted stocks for year 2019.
You are ready to invest in these stocks with a peace of mind as these stocks are low volatility and high returns stocks. Your money invested in these stocks are far more safe than any other stocks. Moreover, they will give high returns also.
This analysis will not take more than 10-15 minutes of yours.What more one can ask for?