Process
Research Methodology
A documented, systematic approach to equity research
Our research methodology is a proprietary three-stage Hybrid Research System combining Technical Analysis with Fundamental Analysis. The methodology is rule-based, documented, and designed for consistent, unbiased research output.
Step 01
Technical Screening
We scan all NSE-listed equities (approximately 2,400 stocks) to identify stocks breaking out to new price highs — the stock price crossing above its previous highest level, indicating strong demand.
A breakout alone is not sufficient. We confirm by checking:
- Whether the breakout is sustained on a monthly or weekly closing basis
- Whether breakout volume is above average, indicating institutional participation
- Whether the stock shows relative strength versus the broad market
Only stocks passing all criteria proceed to the next stage.
Step 02
Fundamental Quality Check
Every stock clearing the technical screen is evaluated on financial health:
| What We Check | Why It Matters |
|---|---|
| Revenue & Profit Growth | Is the business consistently growing? |
| Return on Equity (ROE) | Is the company capital-efficient? |
| Debt Levels | Is the company overleveraged? |
| Promoter Holding & Pledge | Are promoters confident in their own company? |
| Institutional Holding Trend | Are FIIs/DIIs increasing their stake? |
| Free Cash Flow | Is the company generating real cash? |
| Sectoral Tailwind | Does the sector have structural demand growth? |
Each stock receives a quality score. Only stocks meeting a minimum threshold are considered for recommendation.
Step 03
Final Selection & Risk Management
From stocks clearing both stages, final selection ensures:
- Maximum 2 stocks from the same sector per month
- Balance across market capitalisation segments
- Every recommendation includes: entry price range, hard stop-loss, trailing stop-loss, multiple target levels, expected holding period, and risk label
Risk Management
Risk-First Discipline
Risk management is built into every recommendation. Hard stop-loss limits maximum downside. Trailing stop-loss protects gains. Target-based partial profit-booking systematically reduces exposure. After the second target, stop-loss moves to entry price — making the remaining position effectively risk-free.
Data Sources
All analysis uses publicly available data: NSE/BSE official feeds, exchange-filed financial statements, shareholding patterns, SAST disclosures, and government policy documents.