How to Use a Stock Screener to Find the Best Stocks

What is a Stock Screener?

A stock screener is a tool that filters stocks based on criteria you define. Instead of manually checking 500+ NSE stocks, you set conditions and the screener instantly shows you only the stocks that match.

Example: "Show me stocks where RSI < 35 AND price is above 50-day SMA AND market cap > ₹5,000 Cr"

In seconds, you get a shortlist of 5–15 stocks instead of digging through hundreds.

Types of Filters

Technical Filters

Used by traders looking for price-based setups:

• RSI — Relative Strength Index (momentum indicator)
• SMA / EMA — Moving averages (trend direction)
• Volume — Unusual volume often precedes big moves
• Price change % — Filter breakouts or pullbacks
• 52-week high/low proximity — Near 52W high = momentum

Fundamental Filters

Used by investors looking for value:

• P/E Ratio — Price to Earnings
• Market Cap — Large cap, mid cap, small cap
• EPS — Earnings per share
• Dividend Yield — Income from dividends
• Beta — Volatility vs the market

Popular Screener Strategies

1. RSI Oversold Recovery

rsi(14) > 35 AND rsi(14) < 55 AND change_pct > -2

Finds stocks coming out of oversold territory — potential bounce candidates.

2. Volume Breakout

volume > 2000000 AND change_pct > 3

Finds stocks breaking out with strong volume — classic momentum setup.

3. Value Stocks

pe_ratio < 15 AND pe_ratio > 0 AND market_cap > 5000

Large-cap stocks trading at low P/E — value investor's screen.

4. Near 52-Week High (Momentum)

distance_52w_high_pct <= 3 AND close > sma(50)

Stocks within 3% of their 52-week high and above their 50-day average.

5. Quality Momentum

close > sma(50) AND ema(9) > ema(21) AND rsi(14) > 55 AND pe_ratio < 35

Trending stocks with reasonable valuations.

How to Use Screener Results

Step 1: Run the screen → get a shortlist of 10–20 stocks

Step 2: Open each stock's chart → visually confirm the setup looks right

Step 3: Check fundamentals → make sure there's no obvious problem (debt, losses, promoter selling)

Step 4: Check recent news → avoid stocks with pending regulatory issues or earnings risk

Step 5: Add to watchlist → wait for the right entry — not every screener result is a trade

Step 6 (if paper trading): Execute on [NixPulse paper platform](/paper-trade) first → track results before going live

Common Mistakes with Screeners

Mistake 1: Trading every result blindly

A screener narrows down candidates. Each still needs chart review and context.

Mistake 2: Using too many filters

If you have 10 conditions, you may get 0 results or a tiny sample. Start with 2–3 strong filters.

Mistake 3: Not backtesting

Before using a screener in live trading, paper trade its results for at least 1–2 months to see if the strategy actually works.

Mistake 4: Ignoring market regime

A momentum screener that works great in a bull market may give terrible results in a bear market. Always consider the broader trend.

Try the Screener Now

NixPulse's [Screener Pro](/screener-pro) supports RSI, SMA, EMA, P/E, market cap, volume, and more — with 15+ built-in presets to start from.