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Mint
04-08-2025
- Business
- Mint
3 best stock screens to find multibagger stocks in India
In a market flooded with tips, trends, and volatility, it's easy to miss stocks that quietly turn into multibaggers over time. But if you study India's top wealth creators, whether it's Page Industries, Astral Poly, or Balkrishna Industries, you'll notice a pattern: the stock price often follows the numbers. Their common traits: high earnings growth, capital efficiency, and improving margins while still being reasonably priced. Based on historical multibagger patterns, we've curated three practical stock screens that help identify such opportunities early. These screens are inspired by Pranjal Kamra's investing philosophy, focusing on business quality, valuation, and smart money signals. Take the first step towards potential wealth growth. Run the exact queries discussed in the article on Finology Ticker, one of the best stock screeners available, to view the complete list of stocks that match today for free. What It Finds: Companies where profits are growing fast but the stock price hasn't caught up yet. Why It Works: Stocks that stay flat for years despite improving earnings are like springs being compressed. When the market finally notices, the rerating is fast and big. Think 3x–5x moves in just a few years. Real Pattern: When a stock trades close to its 5-year average PE but earnings suddenly jump 20–25%, it often signals a quiet compounder about to get loud. PE Ratio 5 AND EPS Growth Y1 > 20 AND ROCE 5yr Avg > 12 AND Debt to Equity Y1 < 1 AND Promoter Pledging Q1 < 1 AND MCAP > 500 AND MCAP < 50000 AND Net Profit 5yr CAGR > 15 Run this on Finology Ticker to see which companies currently fit this profile. Source: Finology Investor Tip: Don't chase momentum. Instead, use Ticker to track earnings strength and valuations together, especially for companies that are improving under the radar. What It Finds: Companies with high return on capital (ROCE), low debt, and steady sales growth are hallmarks of capital-efficient businesses. Why It Works: Businesses that earn ₹ 25+ on every ₹ 100 invested, and do it without borrowing, often grow steadily for years. They don't need hype; they let numbers do the talking. Many past multibaggers were built on this foundation. Real Pattern: Companies like Pidilite and Astral started as small caps with high ROCE and zero debt, then compounded into giants. This screen helps spot similar businesses early. Strong ROCE + low debt + promoter skin in the game =sustainable compounding. ROCE 5yr Avg > 25 AND Debt to Equity Y1 < 0.5 AND Net sales 5yr CAGR > 18 AND Promoter Holding Q1 > 40 AND Promoter Pledging Q1 < 1 AND Net Profit 5yr CAGR > 15 AND MCAP > 1000 You can run this exact screener on Finology Ticker for free and explore stocks that match your criteria. Source: Finology Pranjal Kamra says that 'Compounding isn't about catching the next rocket. It's about finding reliable engines that keep running,'. Companies with high ROCE and clean balance sheets tend to do exactly that. What It Finds: Companies that are generating solid free cash flow, expanding margins, and reinvesting wisely are well-positioned. Why It Works: A rising operating margin often means better pricing power or cost control. Combine that with free cash flow, and you have a business that funds its growth, safely and steadily. Real Pattern: Stocks like Page Industries saw multibagger returns when their margins expanded and cash flows surged. If a company is growing margins and generating cash, it signals internal strength. And the market rewards that, often with a rerating. FCFF 3yr Avg > 100 AND ROIC Y1 > 12 AND Dividend Payout 5yr Avg < 30 AND Operating Margin Q1 > Operating Margin Q2 AND Operating Margin Q2 > 15 AND MCAP > 1000 AND Promoter Pledging Q1 < 1 AND ROCE 3yr Avg > 15 To see current stocks matching this query, just run it on Finology Ticker's stock screener. Source: Finology Bonus Tip: In Finology Ticker's stock page, you can get an in-built DCF valuation calculator to value a company using Free Cash Flow and its growth. These screeners focus on what really matters: Earnings growth that's ahead of market recognition Profitability is measured through ROCE, margins, and cash flows Clean promoter behaviour and balance sheets No hype, just strong fundamentals Each of these traits has been seen in real multibaggers before they became famous. By turning these into simple screeners on Finology Ticker, you're basically reverse-engineering success. Multibaggers aren't found in tips or Telegram groups. They're discovered in financial statements long before the market catches on. The good news? With tools like Finology Ticker, you no longer need to be an analyst to do this. Many long-term investors use Ticker's screener to save their screens and then run them every few weeks, helping them stay alert without reacting to daily market noise. As Pranjal Kamra says, 'Good investing is boring. But it works.' Start with proven filters, ignore the noise, and let the numbers guide you. The next multibagger might already be on your screen; you just need the right lens to spot it. Finology is a SEBI-registered investment advisor firm with registration number: INA000012218. Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
Mint
03-08-2025
- Business
- Mint
Vijay L Bhambwani's Ticker: Bulls are running out of time
Ticker is a weekly newsletter by Vijay L Bhambwani. Subscribe to Mint's newsletters to get them directly in your email inbox. Dear reader, Last week, I wrote bulls must flex their muscles and make their presence felt, or risk losing the initiative. The market fell for the fifth week in a row, which means bulls are a worried lot. They are fast approaching a tipping point where they will need to defend the markets or get overwhelmed by their mark-to-market (notional) losses. To be fair to the bulls, they have multiple reasons to worry. The India-US trade deal is turning into a nightmare. The resultant fall in the rupee opens the floodgates of 'imported inflation." This occurs when the domestic currency weakens so much that imported goods become expensive due to the exchange rate alone. The biggest fear is oil and gas turning expensive. These commodities are known as multiplier commodities, since they have a trickle-down effect on the price of every other commodity. That means higher inflation posing a threat to the feel-good-factor. The Reserve Bank of India (RBI) will announce its decision on interest rates on 7 August. Any lowering of the repo rate may not have the expected and/or desired impact on the markets. That is because the actual cost of funds remains high. That is triggering declines in banking and financial sector stocks, which in turn command a combined weightage of 37.41% in the Nifty 50. This is where the problem lies. Unless bulls act fast, and buy banking and financial sector stocks aggressively, the market may witness some more declines. On the global stage, last week I wrote about pension regulations in US and Europe threatening to slow down inflows into financial markets in the coming quarters. You can read it here. That has the potential to spook bulls globally. As I have written in my past articles, this is the phase of procyclical hysteresis in financial asset markets. This phenomenon occurs when asset prices revert to the prevalent economic realities, after moving against it for a while. The 2020-2024 period was one such period of counter-cyclicality, when businesses were sluggish but financial markets were defying gravity. The mean reversion is anything but smooth and retail traders run the risk of being hurt the most. This week will continue to witness action on stocks of public sector undertakings, particularly in banking. The monetary policy announcement on 7 August will set the pace thereafter. Oil and gas stocks may witness larger-than usual weekly ranges, as energy commodities are highly volatile. That could include wild two-way price moves. My hypothesis that oil and gas markets are adequately supplied and price rises, if any, would be short-lived, was validated by last week's market action. Bullion continues to witness buying support on declines and the long-term story remains intact. Industrial metals witnessed a sell-off along expected lines. Since July contracts expired for base metals, prices eased. That could see some declines and/or selling on advances for metal and mining stocks this week. Fixed income investors should continue to keep the powder dry till the RBI verdict is out. Do not trade without adequate tail risk (Hacienda) hedges in place. That could make all the difference between crippling losses and a rap on the knuckles this week. A tutorial video on tail risk (Hacienda) hedges is here - Rear View Mirror Let us assess what happened last week, so we can guesstimate what to expect in the coming week. The fall was led by the banking and financial sector stocks and the broad-based Nifty 50 brought up the rear. A strong US dollar spooked emerging markets including India. The rupee weakened against the dollar, which added to the nervousness. Gold rallied as safe-haven buying returned. Silver reacted lower on profit sales. Oil and gas witnessed selling on advances, which is likely to persist unless a fresh a trigger emerges to indicate otherwise. Indian 10-year bond yields rose again, which dragged the Bank Nifty lower. NSE lost 1.61%, which indicates broad-based selling. Marketwide position limits fell routinely after expiry. US headline indices fell, adding headwinds to domestic markets. Retail Risk Appetite I use a simple yet highly accurate yardstick for measuring the conviction levels of retail traders – where are they deploying money. I measure what percentage of the turnover was contributed by the lower and higher risk instruments. If they trade more of futures which require sizable capital, their risk appetite is higher. Within the futures space, index futures are less volatile compared to stock futures. A higher footprint in stock futures shows higher aggression levels. Ditto for stock and index options. Last week, this is what their footprint looked like (the numbers are average of all trading days of the week): We saw turnover contribution rise in the high-risk high-capital-intensive futures segment largely due to expiry of the July series. Traders tend to roll over their trades from the expiring month to the next month which logs dual turnover. The fact remains that it indicates higher risk appetite too. In the relatively lower risk options segment, turnover contribution rose in index options, whereas stock options turnover fell sharply. This indicates lower risk appetite in the options segment. Overall risk appetite seemed a tad higher. Matryoshka Analysis Let us peel layer after layer of statistical data to arrive at the core message of the first chart I share is the NSE advance-decline ratio. After the price itself, this indicator is the fastest (leading) indicator of which way winds are blowing. This simple yet accurate indicator computes the ratio of number of the rising stocks compared to falling stocks. As long as gaining stocks outnumber the losers, bulls are dominant. This metric is a gauge of the risk appetite of 'one marshmallow' traders. These are pure intraday traders. A tutorial video on the marshmallow theory in trading is here - The Nifty clocked bigger losses and continued its five-week long losing streak. That resulted in intraday buying conviction remaining subdued. At 0.80 (prior week 0.67) it indicates 80 gaining stocks for every 100 losers. For a sustainable bull market, it is essential that this ratio stay above 1.0 consistently to propel markets higher. Watch your trading terminal screen keenly this week. The second chart I share is the market-wide position limits (MWPL). This measures the amount of exposure utilized by traders in the derivatives (F&O) space as a component of the total exposure allowed by the regulator. This metric is a gauge of the risk appetite of 'two marshmallow' traders. These are deep-pocketed, high-conviction traders who roll over their trades to the next session/ MWPL reading fell routinely after expiry of the July 2025 derivatives series. As I mentioned last week, the extent of the fall would tell a story. The post-expiry low is lower than the comparable week last month. This tells us traders have rolled over fewer positions post-expiry as compared to the prior month. That hints towards caution. A dedicated tutorial video on how to interpret MWPL data in more ways than one is available here - The third chart I share is my in-house indicator 'impetus.' It measures the force in any price move. Last week, both indices fell with higher impetus readings, which indicates the fall was triggered by forceful selling. That is not good news. Ideally, the fall should have occurred on lower impetus reading or even better, indices should have risen on higher impetus reading. Should our headline indices continue to fall with higher impetus readings, it could open the doorway to further declines. The final chart I share is my in-house indicator 'LWTD.' It computes lift, weight, thrust and drag encountered by any security. These are four forces that any powered aircraft faces during flight; so, applying it to traded securities helps a trader estimate prevalent sentiments. Last week, the Nifty extended the decline and fell for the fifth week in a row. The LWTD reading rose but remained well below the zero mark at -0.34 levels. That tells me fresh short covering and/or fresh support may improve compared to the prior week, but will remain below optimal levels. Bulls need to flex their muscles and fast or risk losing the initiative. A tutorial video on interpreting the LWTD indicator is here - Nifty's Verdict The weekly chart indicates a fall for the fifth week in a row and the price has now settled below its 25-week average (blue line). That average is a proxy for six-month holding cost of an average retail investor. Since recent buyers are holding losing positions, they may experience short-term anxiety. That raises the possibility of some distress selling. Last week, I suggested watching the 24,800 level on the Nifty as a last-mile support. The same was violated on a closing basis. That puts bulls at a disadvantage. The last mile support is at the 24,200 threshold which must be defended or bulls can face even more distress. On the flipside, the Nifty needs to trade consistently above the 24,800 level to imbibe confidence in day traders. Investors will derive comfort only above the 25,250 level. Your Call to Action – watch the 24,200 level as a near-term support. Only a breakout above the 25,250 level raises the possibility of a short-term rally. Last week, I estimated ranges between 57,725 – 55,325 and 25,375 – 24,300 on the Bank Nifty and Nifty respectively. Both indices traded within their specified resistance levels. This week, I estimate ranges between 56,800 – 54,450 and 25,075 – 24,050 on the Bank Nifty and Nifty respectively. Trade light with strict stop losses. Avoid trading counters with spreads wider than 8 ticks. Have a profitable week. Vijay L Bhambwani Vijay is the CEO of a proprietary trading firm. He tweets at @vijaybhambwani
Mint
27-07-2025
- Business
- Mint
Vijay L Bhambwani's Ticker: It's time for bulls to make their presence felt
Ticker is a weekly newsletter by Vijay L Bhambwani. Subscribe to Mint's newsletters to get them directly in your email inbox. Dear Reader, Last week, I wrote about the daunting prospect of overhead supply (selling by bulls trapped at higher levels) weighing on bulls. That hypothesis was validated by the markets as indices slipped in the latter half of the week. Triggers for the overhead supply remain unchanged. Proposed changes in the US and UK, which may reduce the flow of money to pension funds, are worrying bulls. It should be remembered that pension funds manage huge sums as long-term assets under management (AUM), which makes them the biggest institutional investors in equity markets. If AUMs fall in the pension fund industry, support to equity markets may be impacted as well. The delay in tying up trade deals and fears of slowing consumer spending worldwide are also weighing on sentiments. This is an expiry week, and therefore, traders are likely to be preoccupied with rolling over or squaring up (closing) their trades. Volatility is usually higher in expiry weeks. The positive trigger that emerged is that traded volumes perked up in the derivatives segment. This was partly due to Jane Street being allowed to resume operations in India. Aggressive follow-up buying will be crucial to revive sentiments. Do note the Nifty-50 has slipped for four weeks in a row, and bulls are running out of time. If they are to get a grip on sentiments, they must make their presence felt before the 24,800 support I have been mentioning for a fortnight is violated. In terms of sectoral action, public sector undertakings will continue to attract traders due to the emotional and financial stakes being relatively high in these stocks. Banking stocks within the PSU space will be particularly volatile. As we approach the Reserve Bank of India's announcement on interest rates on 7 August, traders are likely to ramp up their exposure on these stocks. Larger two-way moves are expected on these stocks. Metal prices may witness routine month-end short-covering, which can perk up metal and mining stock prices this week. Upsides will remain capped, however. Oil and gas-related stocks will also witness hectic trades, as energy prices are slipping on global commodity exchanges. Bullion remains bullish for the patient long-term investor, who is willing to look past calendar 2025. Oil and gas prices are likely to stay subdued, and rallies, if any, are likely to run into selling pressure. I maintain my long-standing view that energy markets are well-supplied and shortages exist only in market narratives. I recommend my readers traders light with tail risk (hacienda) hedges in place to avoid any shocks to capital. Being an expiry week makes it even more pressing to prioritize capital preservation over trading profits. A tutorial video on hacienda hedges is here - Rear View Mirror Let us assess what happened last week so we can guesstimate what to expect in the coming week. The fall was led by the broad-based Nifty, whereas the Bank Nifty logged gains. Being heavily weighted in the Nifty index, banking stocks cushioned the declines in the Nifty which, otherwise, may have slipped significantly. A weak dollar aided sentiments in emerging markets including India. Safe-haven buying eased in bullion, which otherwise remained firm. Oil and gas fell sharply as demand growth was feared to contract in the near future. The rupee eased versus a weakening dollar, which underscores the nervousness in the forex peg. Indian forex reserves slipped marginally, which weighed on sentiments. The Indian 10-year sovereign bond yields rose which dragged banking stocks since banks are the biggest investors in bonds. NSE market capitalization slipped 1.54%, which indicates broad-based selling. Market wide position limits (MWPL) rose routinely ahead of the expiry. US headline indices rose, providing tailwinds to our markets, which could have otherwise slipped deeper. Retail Risk Appetite – I use a simple yet highly accurate yardstick for measuring the conviction levels of retail traders – where are they deploying money. I measure what percentage of the turnover was contributed by the lower and higher risk instruments. If they trade more of futures which require sizable capital, their risk appetite is higher. Within the futures space, index futures are less volatile compared to stock futures. A higher footprint in stock futures shows higher aggression levels. Ditto for stock and index options. Last week, this is what their footprint looked like (the numbers are average of all trading days of the week) – Turnover contribution in the higher-risk, capital-intensive futures segment was marginally higher. Much of it can be attributed to the rollover of trades from the July to August series. This results in dual turnover being logged, which is routine. In the relatively safer options segment, turnover rose in the stock options segment which is marginally more riskier than index options. Some of it can be rollover trades from July to August series. Overall. risk appetite remained subdued. Matryoshka Analysis Let us peel layer after layer of statistical data to arrive at the core message of the first chart I share is the NSE advance-decline ratio. After the price itself, this indicator is the fastest (leading) indicator of which way the winds are blowing. This simple yet accurate indicator computes the ratio of the number of rising stocks compared to falling stocks. As long as gaining stocks outnumber the losers, bulls are dominant. This metric is a gauge of the risk appetite of 'one marshmallow' traders. These are pure intra-day traders. The Nifty clocked smaller losses last week, but the advance-decline ratio slipped from 1.11 in the prior week to 0.67 last week. That means there were 67 gaining stocks for every 100 losing stocks. Intra-day buying conviction was lower. This ratio must stay above 1.0 sustainably all week for bulls to regain their lost initiative. A tutorial video on the marshmallow theory in trading is here - The second chart I share is the market wide position limits (MWPL). This measures the amount of exposure utilized by traders in the derivatives (F&O) space as a component of the total exposure allowed by the regulator. This metric is a gauge of the risk appetite of 'two marshmallow' traders. These are deep-pocketed, high-conviction traders who roll over their trades to the next session/s. The MWPL rose routinely ahead of the expiry week, but the peak was lower than the prior month's peak. This week being an expiry one, this reading can only fall this week. Swing traders are showing signs of hesitation. If markets rally strongly in the August derivatives series, bulls must ramp up their exposure levels to make their presence felt. Post-expiry routine decline should be watched keenly. If the low is higher than the 26.20 level of last month, it would imply some optimism.A dedicated tutorial video on how to interpret MWPL data in more ways than one is available here - The third chart I share is my in-house indicator 'impetus.' It measures the force in any price move. Last week, both indices fell with falling impetus readings. That tells us the fall was more of a gradual slide triggered by poor buying support rather than aggressive selling. Ideally, the price and impetus readings should rise in tandem to confirm a sustainable upthrust. The final chart I share is my in-house indicator 'LWTD.' It computes lift, weight, thrust and drag encountered by any security. These are four forces that any powered aircraft faces during flight; so, applying it to traded securities helps a trader estimate prevalent sentiments. Last week, the Nifty logged smaller declines, but the LWTD reading fell sharply to its lowest after the week ended 18 April, 2025. That implies lower fresh buying support for the Nifty this week. While short-covering can occur, it can cushion declines. For a fresh rally, aggressive follow-up buying will be required. A tutorial video on interpreting the LWTD indicator is here - Nifty's Verdict Last week, we saw a red candle on the weekly chart. This is the fourth bearish candle in a row. It was an inverted hammer candle. That indicates an abortive attempt by bulls as they tried to push prices higher but failed, and the index slid back into negative territory. The price remains above the 25-week average, which is a proxy for the six-month holding cost of an average retail investor. The medium-term outlook remains positive for now, as long as the price stays above this average. Last week, I advocated watching the 24,800 level, which bulls needed to defend in case of a decline. Note how the weekly low was 24,806. This threshold remains as the immediate support area to watch out for. The longer the index stays below this threshold, the more difficulty bulls may encounter on the upside. That is because overhead supply (selling from bulls trapped at higher levels) can limit rallies in the near term. On the flipside, the nearest resistance is at the 25,250 level, which must be overcome if the Nifty is to have a reasonable chance to rally. Your Call to Action – watch the 24,800 level as a near-term support. Only a break-out above the 25,250 level raises the possibility of a short-term rally. Last week, I estimated ranges between 57,500 – 55,050 and 25,525 – 24,400 on the Bank Nifty and Nifty respectively. Both indices traded within their specified resistance levels. This week, I estimate ranges between 57,725 – 55,325 and 25,375 – 24,300 on the Bank Nifty and Nifty respectively. Trade light with strict stop losses. Avoid trading counters with spreads wider than eight ticks. Have a profitable week. Vijay L. Bhambwani Vijay is the CEO a proprietary trading firm. He tweets at @vijaybhambwani
Mint
20-07-2025
- Business
- Mint
Vijay L Bhambwani's Ticker: The reason why bulls aren't stepping out yet
Ticker is a weekly newsletter by Vijay L Bhambwani. Subscribe to Mint's newsletters to get them directly in your email inbox. Dear reader, Last week, I wrote optimism was giving way to desolation. Bulls were showing a lack of conviction not seen for months. Traded volumes shrank sizeably, and take-home profits shrank significantly. It became a self-fulfilling prophecy of sorts. Traded volumes were poor because profits were meagre, and profits were meagre because traded volumes took a hit. This vicious circle will be broken only after traded volumes rise significantly. Where yields on theta decay (collecting premiums) on option writing are concerned, the low-hanging fruit has been picked already. The road ahead seems to be mildly uphill. That means increased capital intensity and lower take-home profits. That means a small portion of present traders may exit the markets, atleast temporarily. US president Trump continued to threaten nations with additional tariffs and kept markets on the edge. Particularly noteworthy was the threat to impose sanctions on Russian oil exports and nations that bought Russian oil and gas. That includes India. Overseas institutional investors continued to press short sales on Indian markets inspite of announcements of a near breakthrough in India-US trade deal. That was an overhang of overhead supply for retail traders who were stuck with purchases at higher levels. This phenomena of overhead supply occurs when a sizeable number of traders are waiting in the wings to offload their open trades as soon as they reach break-even levels. This usually acts like a speed-breaker for a bull market. That means buyers must not only buy in large volumes but they must continue to buy in large volumes till all the overhead supply is absorbed and selling pressure subsides. That is a challenging task. It will show up on your trading terminal's screen on the snap quote window. If the bid/offer spreads (difference between the best buyer and best sellers limit orders) narrow to within 5-6 ticks, you know liquidity is improving. The value of a tick is 5 paise per share for stocks trading above ₹ 250. In the commodity markets, industrial metals may see month-end short-covering lifting prices. That can have a trickle-down effect on stock prices of some metal mining companies' stock prices. Much will depend on the overall market sentiment prevalent this week. If sentiments are cautious or weak, the rally in these stocks may be subdued as well. Public sector undertakings (PSUs) will continue to witness hectic activity in two-way trades as traders are heavily invested in this segment. Banks will attract greater attention among PSU stocks as this segment commands the heaviest weightage in the Nifty. Precious metals witnessed profit-taking at higher levels as the US dollar index gained strength. Safe-haven buying eased mildly. If you are a patient long-term investor, look beyond 2025 and the bullish story is still intact. In the energy space, the markets continue to remain adequately supplied, and rallies are proving to be seasonal and short-lived. Higher levels are running into a wall of selling. While geopolitical and/or natural events (June to October is the hurricane season in the US) can trigger short-covering, it is likely to be short-lived. Fixed income investors should continue to keep the powder dry as market indicators points towards little or no room for actual rates to fall. While headline (policy announcement) rates may fall, borrowers are unlikely to access availability of funds at those rates. Trade light as markets lack depth and bid/offer spreads are too wide for comfort. Maintain tail risk (Hacienda) hedges on your trades to protect your capital from sudden shocks. A tutorial video on tail risk (Hacienda) hedges is here - Rear View Mirror Let us assess what happened last week so we can guesstimate what to expect in the coming week. The fall was led by the Bank Nifty whereas the Nifty brought up the rear. The US dollar index (DXY) firmed up and exerted pressure on emerging markets including India. A strong dollar dragged bullion and oil prices lower too. The rupee fell against a firm dollar and that made banking stocks more volatile. Indian 10-year bond yields eased marginally, which cushioned declines in the Bank Nifty. The NSE's market capitalization rose mildly, which indicates mild optimism present in the markets even as headline indices remain under pressure. Market wide position limits (MWPL) rose routinely, but gains were marginal. US markets rose and provided tail winds to our markets and limited the downsides. Retail Risk Appetite I use a simple yet highly accurate yardstick for measuring the conviction levels of retail traders – where are they deploying money. I measure what percentage of the turnover was contributed by the lower and higher risk instruments. If they trade more of futures which require sizeable capital, their risk appetite is higher. Within the futures space, index futures are less volatile compared to stock futures. A higher footprint in stock futures shows higher aggression levels. Ditto for stock and index options. Last week, this is what their footprint looked like (the numbers are average of all trading days of the week): The high-risk and capital-intensive futures segment saw no change in turnover contribution for the week. In the relatively lower-risk options segment, turnover rose in the lowest-risk segment in the derivatives category – index options. These are also the least capital-intensive to trade. Overall, risk appetite fell off the cliff in the derivatives segment. Matryoshka Analysis Let us peel layer after layer of statistical data to arrive at the core message of the first chart I share is the NSE advance- decline ratio. After the price itself, this indicator is the fastest (leading) indicator of which way winds are blowing. This simple yet accurate indicator computes the ratio of number of the rising stocks compared to falling stocks. As long as gaining stocks outnumber the losers, bulls are dominant. This metric is a gauge of the risk appetite of 'one marshmallow' traders. These are pure intraday traders. The Nifty clocked smaller losses last week and the advance-decline ratio climbed marginally. At 1.11 (prior week 0.75) it shows 111 gainers for every 100 losers. That shows intraday traders shower improved optimism last week. As long as the reading stays above 1.0 sustainably, bulls still have a chance. A tutorial video on the marshmallow theory in trading is here - The second chart I share is the market wide position limits (MWPL). This measures the amount of exposure utilized by traders in the derivatives (F&O space as a component of the total exposure allowed by the regulator. This metric is a gauge of the risk appetite of 'two marshmallow' traders. These are deep-pocketed, high-conviction traders who roll over their trades to the next session/s. The MWPL reading edged higher mildly, but was lower than the reading in the comparable week last month. That tells us optimism, though present in the market, was lower as traders were cautious about enhancing their exposure levels. A dedicated tutorial video on how to interpret MWPL data in more ways than one is available here - The third chart I share is my in-house indicator 'impetus.' It measures the force in any price move. Last week both indices fell with rising impetus readings. That tells us the selling momentum was higher and traders willingly participated in the selling process. Ideally prices and impetus readings must rise together to indicate a sustainable bull market. The final chart I share is my in-house indicator 'LWTD.' It computes lift, weight, thrust and drag encountered by any security. These are four forces that any powered aircraft faces during flight; so, applying it to traded securities helps a trader estimate prevalent sentiments. The Nifty clocked smaller losses last week and the LWTD reading was flat. That tells me fresh buying support is unlikely to change radically this week. Short-covering can cushion declines but it takes aggressive fresh buying to overcome overhead supply and trigger a new high. A tutorial video on interpreting the LWTD indicator is here - Nifty's Verdict The Nifty's weekly candlestick chart shows a third consecutive week of declines. The magnitude of the fall was, however, smaller. The peak made three weeks ago was marginally lower than the previous peak in September 2024. The support I specified last week at the 24,800 mark held, and that tells me bulls still have a fighting chance as long as they can defend this threshold. The price is above the 25-week moving average, which is a proxy for the six-month average of an average investor. The medium-term outlook remains optimistic as long as this level holds. A fresh reliable upthrust is possible only after the 25,750 recent high is overcome forcefully. That will confirm that the overhead supply has been absorbed. Your Call to Action Watch the 24,800 level as a near-term support. Only a break out above the 25,750 level raises the possibility of the bull market resuming. Last week, I estimated ranges between 58,075 – 55,450 and 25,750 – 24,550 on the Bank Nifty and Nifty respectively. Both indices traded within their specified resistance levels. This week, I estimate ranges between 57,500 – 55,050 and 25,525 – 24,400 on the Bank Nifty and Nifty respectively. Trade light with strict stop losses. Avoid trading counters with spreads wider than 8 ticks. Have a profitable week. Vijay L Bhambwani Vijay is the CEO of a proprietary trading firm. He tweets at @vijaybhambwani
Yahoo
27-06-2025
- Automotive
- Yahoo
RAC wise to target younger and older motor insurance customers with telematics policies
The RAC is launching two, new forms of telematics insurance; targeting both younger and older customers in the UK. GlobalData's 2024 Emerging Trends Insurance Consumer Survey suggests this is a positive move to attract new customers. It has partnered with the insurtech Ticker and launched a policy targeting young drivers with traditional telematic policies. It will release a pay-per-mile-type policy later this year, which aims to target over 60s who drive fewer miles. GlobalData's survey found that both telematics and pay-per-mile insurance policies were effective ways of increasing customer satisfaction. It found that of global consumers who had a telematics policy, 77.4% of them were either satisfied or very satisfied with the premium savings it led to in their policy. Furthermore, 89.2% would be quite or very likely to recommend this type of policy to a friend. Pay-as-you-go (PAYG) policies had slightly-lower satisfaction rates. They were still strong though, with 6.4% satisfied or very satisfied with its impact on premiums and 84.2% quite or very likely to recommend it to a friend. This highlights the widespread satisfaction levels with telematics and PAYG policies around the world. There can be some skepticism among those who do not have such policies, with many hesitant to share personal data or have their driving judged, but GlobalData's survey strongly suggests that those who do have it are satisfied. Therefore, the data suggests a higher likelihood of renewal. The RAC is not a leading player in the UK motor market at present—GlobalData's 2024 UK Insurance Consumer Survey placed them as the 14th-biggest motor insurer in the UK with a 2.1% share. However, its specific targeting of the two, crucial demographics of younger and older generations appears wise. They are two age groups that require more-tailored treatment due to being higher risk and facing higher premiums. Therefore, if the RAC can market its new products and attract customers, it should see strong retention and even growth via word of mouth. "RAC wise to target younger and older motor insurance customers with telematics policies" was originally created and published by Life Insurance International, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Erreur lors de la récupération des données Connectez-vous pour accéder à votre portefeuille Erreur lors de la récupération des données Erreur lors de la récupération des données Erreur lors de la récupération des données Erreur lors de la récupération des données
