Product Overview

MarketSmith India has four key sections to support your investment decisions: Idea Lists, Evaluation, Market Outlook, and Model Portfolio. You can get further detail on features by selecting the (i) buttons scattered throughout each section.

Product Demo

CAN SLIM, Our Methodology

Idea Lists

Idea Lists offers you a shortcut to either 1) finding new stocks to buy that leverage our investing principles and Pattern Recognition, or 2) monitoring the stocks that you already own or are watching, on up to 50 separate lists. You have the option to generate watch lists by running select filter criteria against all Indian stocks.

All users have access to lists such as Up On Volume, Upcoming and Announced Earnings, Recent Breakout, Breaking out Today & Failed Breakout, Near Pivot and Extended Stocks, Price Gap up etc. to identify stocks with qualities associated with increasing interest in the stock by professional investors. Additional lists, such as Growth 50, Trend Template, RS Blue Dot, GURU lists require a subscription.

Navigating your lists on MarketSmith India
  • Tap on a stock in the list view to see the Evaluation view of a stock. Swipe left or right to go to the next or previous stock in the list.
  • Add a stock by simply tapping and holding on the mini chart, then dragging it onto a personal list.

Evaluation View

The Evaluation view is composed of a stock chart and the stock-specific data in the Details Tab. This view efficiently combines the key stock information you need to validate your decision to buy or sell or to commit to further research.

The Chart Overview support content will provide you with an orientation of the data items available on the chart and how they may be used to quickly evaluate a stock.

The Details Tab breaks down the data grid so you can better understand the comprehensive fundamental and technical stock information available.

The Related tab provides details of the company’s competitors / peers. One can review the company’s performance in comparison to its competitors and understand if it is among the best in the industry.

The Checklist tab has five Gurus, William O’Neil, Warren Buffet, Benjamin Graham, Peter Lynch, James P O’Shaughnessy and their key parameters. Investors can quickly check if the stock meets the parameters the legends check for their analysis.

MarketSmith Guru Screens make it easy to get your screening process started by generating stock ideas using established and proven methodologies. Guru screens are designed to support a variety of investment strategies; they filter the MarketSmith Database to uncover stock ideas based on the winning investment strategies of stock market legends.

The Estimates tab provides analyst views on the stock, the consensus view, price targets, EPS and Sales estimates. In addition, you can also find the broker / research reports by various brokers here.

The Surveillance tab lets you know if the stock is part of any of the surveillance list or has any obvious red flags so you can take necessary action.

Market Outlook

Market Outlook provides a weekly commentary on overall Indian market conditions, an analysis of select stocks on our premium Growth 50 index list, and an evaluation of how well our list performed versus the market. This outlook helps to clarify whether the current market environment is helping or hurting growth stocks.

Model Portfolio

Model Portfolio is a weekly update on how the positions are progressing in the portfolio of stocks picked by the research analysts at MarketSmith India. Following the changes to our portfolio is a great way to see our method in action, and learn how to take advantage of the powerful information available on the app particularly if you are new to investing in Indian growth stocks.

Weekly commentary in the Model Portfolio includes its overall performance against the National Stock Exchange, a list of positions entered, added to, or sold from the portfolio, and any noteworthy performance by stocks, triggered by significant news events, earnings releases, or technical changes.

Admin

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Sales

How can I get the Invoice for my subscription? : Please email your billing name, registered mobile number and complete address with GST number to support@marketsmithindia.com and we will generate the invoice and email it to you within 15 days.

Are there any offers / discounts? : Please visit https://marketsmithindia.com/mstool/subscription_f.jsp for current offers, if any

My subscription expires in two months time. If I renew now, when will the new subscription start? If you subscribe now, the additional months will get added to you current remaining days. For ex. you have two months and you subscriber for 12 months, your total remaining will become 14 months.

Market Smith mail alerts are going to promotional inbox due to which I am unable to take the actions at right time. How to make sure emails land in primary inbox of my Gmail? We do not recommend stocks for Intra To make sure our emails don’t go to your junk folder or get blocked, please add "marketsmithindia@williamoneilindia.com" and "swingtraderindia@williamoneilindia.com" to your email contacts.

MarketSmith India

MarketSmith India is more focused on long term investing and it is a full-fledged tool for doing various types of analysis on Long Term Investing. We have various in-built screeners to shortlist stocks and analyze the same. In addition, we have Model Portfolio, Daily Outlook on the overall market, research reports, estimates and broker reports and evaluation of every stock and a lot more.

If you are a beginner, we would suggest you start with our Model Portfolio, which contains a list of stocks, which qualify CAN SLIM criteria, and are added to the list on a proper breakout from their pivots. While there may be many stocks which qualify for the above, we ensure that the best and the most ideal of the lot are recommended. Stocks are removed from the model portfolio when they breach our sell-rules, or when they weaken technically. You can consider purchasing such stocks, when they are added to the list. The additions are notified through the app and email alerts. It is recommended that stocks are added, when they are within 5-7% price range from their pivot levels. Similarly, investors can remove stocks when they receive the remove alert, which are sent through the app or email

You can access our model portfolio here https://marketsmithindia.com/mstool/modelPortfolio.jsp#/.

SwingTrading India

SwingTrading India gives suggestions on Swing Trading environment to help you take advantage of short term trends, which could be as low as 1 or 2 days. You can see our current and past trade list here https://www.swingtraderindia.com/#/currentTrades.

AlgoSmith

AlgoSmith is an automated Stock portfolios service from William O'Neil India which provides tailored strategies to invest in based on an investor's Risk Appetite and Growth requirements. There are multiple tested strategies backed by over 60 years William O'Neil Research and 10 years of fundamental data collected for Indian and Global Markets. We give suggestions on the stocks, weights and a rebalance notification whenever a stock is added / removed from the model portfolio.

Intra Day recommendations

We do not recommend stocks for Intra Day, you can check SwingTrading India which gives suggestions on Swing Trading environment to help you take advantage of short term trends, which could be as low as 1 or 2 days.

Model Portfolio

What is Model Portfolio? How do I take advantage of it? : Model Portfolio contains a list of stocks, which qualify CANSLIM criteria, and are added to the list on a proper breakout from their pivots (resistance levels). While there may be many stocks which qualify for the above, we ensure that the best and the most ideal of the lot are recommended. Stocks are removed from the model portfolio when they breach our sell-rules, or when they weaken technically. Investors can consider purchasing such stocks, when they are added to the list. The additions are notified through the app and e-mail alerts. It is recommended that stocks are added, when they are within 5-7% price range from their pivot levels. Similarly, investors can remove stocks when they receive the remove alert, which are sent through the app or e-mail

A stock was added to the Model Portfolio last month. Can I buy it? : Buying right solves half of your selling problems. The ideal buy range for a stock is when it is purchased within 5-7% price range from its pivot. Our research shows that buying within the 5-7% range, enables you to sit through most of the normal price corrections in a stock. Therefore, please ensure that you buy stocks only when they are recommended and are not extended more than 7% from their pivot. You should also look at the current market condition, even if the stock is available in the buy range. There is a possibility that the market direction could have changed as our recommendation, and hence it is important to keep an eye on the market trend before making any new purchase. If you like a stock in the model portfolio, but have missed buying it, either because the stock was not available within the ideal buy range or the market direction was unfavourable. Do not worry. The stock market provides ample opportunities in terms of other stocks or new entry points into your favourite stock.

How many stocks should I own? (Ideal number of stocks in a portfolio) : Individual investors with a large portfolio, say of INR 10 lakhs, need not own more than six or seven well-selected stocks. Smaller capital investments should consider holding only three or four stocks. Once you own the required number of stocks and if a tempting opportunity comes along that you think is really great, you must buy more only by selling off your least attractive investments. The more stocks you own, the harder it is to maintain a proper track of them. Additional capital could be used to average-up existing positions, when such stocks break out of proper bases. The objective is to have one or two big winners rather than dozens of small profits.

When do stocks get added/removed to/from portfolio? How frequent would be the changes? : Stocks are added to the MarketSmith India model portfolio based on fundamental and technical strength, using the CANSLIM methodology. While many stocks may qualify our CANSLIM criteria, they are added to the Model Portfolio, when they breakout from their bases (price consolidation patterns) and when they close strongly near their pivots (previous resistance levels). Stocks are removed from the model portfolio when they breach our sell rules including stop-loss hits (we follow a 8-10% stop- loss rule), and 50-DMA and 200-DMA breaks on huge volume. Stocks could also be removed on an account of profit booking (20-25% or higher). Stocks showing technical weakness, without strictly breaching the above sell rules are also considered for removals. Stocks are added and removed, based on the volatility of the market. Our research has shown that three of four stocks trend along with the general market. If the market is in a Confirmed Uptrend, the green signal remains on for new stock purchases. Similarly, when the market is in a Downtrend, we generally avoid adding any number of stocks to the model portfolio..

What should be the minimum portfolio size to take advantage of MarketSmith India model portfolio (1 lakh, 10 lakh?) : Stocks provide an advantage of investing in even with the smallest of token sizes. While we do not provide any emphasis on the size of the portfolio, per se, we recommend investors to not hold too many stocks in their portfolio. Smaller capital investments should consider holding not more than three or four stocks. Individual investors with a large portfolio, say of INR. 10 lakhs or more, need not own more than six or seven well-selected stocks.

How many stocks will you have in the MarketSmith India model portfolio? Should I hold all of them? : The number of stocks in the model portfolio could range anywhere from 1 to 40. The model portfolio represents Model stocks, and how to enter them at their Ideal buy points. While it is not advised to add every single model portfolio stock to your portfolio, investors are advised to select the best of the stock ideas which appeal to them. Holding a few good ideas can generate the required returns, when purchased at proper buy points, and when strict sell-rules are followed. While the model portfolio could have a higher number of stocks, going up to 40, it is only an indicative list on screening for CANSLIM stocks and entering them at their ideal buy points. Please note, the model portfolio performance has beaten the benchmark; inspite of the number of stocks in the portfolio indicating the effectiveness of the CANSLIM growth strategy.

What is the benchmark index of the model portfolio? : The Nifty 50 has been the benchmark selected to evaluate the performance of the MarketSmith India model portfolio. The model portfolio could comprise any of the micro, small, mid, or large cap stocks, which qualify our liquidity criteria, resulting in the general market to be our universe. The performance of the model portfolio has well-beaten the benchmark from inception, even after adjustments for regular trading fees, implying the effectiveness of the CANSLIM growth strategy. Important Note: The model portfolio is run with an objective to provide effective stock ideas to the investor, and not strictly with an objective to beat the benchmark. While we are happy to assume responsibility to track the performance of our recommendations, we believe running a model portfolio, with an objective to purely generate alpha using the CANSLIM methodology, could generate far superior returns.

When will I be notified about a stock addition or removal? : Subscribed users are notified of any additions or removals to the model portfolio through a notification from the MarketSmith India app, and an e-mail alert to the registered e-mail of the user. The app and the e-mail alerts contain information including the add/remove prices for the stock, market cap, volume, industry details, stock research, etc. Alternatively, one can refer the model portfolio section.

What is Growth 50 list and will there be common stocks in Growth 50 and Model Portfolio? : The Growth 50 list is algorithmically generated list of the top growth stocks in India, with strong fundamental and technical characteristics. The list gets updated on a weekly basis, and can have stocks that may or may not be available at their ideal buy points. There is a likely possibility that there could be common stocks in Growth 50 and the model portfolio.

Will I get notification of addition/removal on Growth 50 list? : No, there is no notification sent on the Growth 50 list. The list gets updated on the product every Friday, close of business. Please click on the Growth 50 tab to see the list. The list also includes Recent Additions and Recent Removals tab.

How do I use Growth 50 list? : Growth 50 provides you with algorithmically generated list of the top growth stocks in India. One can then filter out top stocks using TOP STOCKS-NEAR BUY POINT. However, the list does not consider the chart patterns. Once you select any stock, you should research further and wait for the ideal buy point before taking the final decision on that particular stock.

How do I screen stocks based on certain parameter? : On clicking Filter India Stocks under Idea Lists, you can see an option to Filter and sort the list of stocks. The list of stocks can be filtered by five of our proprietary ratings (Master Score, EPS Rating, Price Strength, Buyer Demand, and Group Rank) and eight other common parameters (Market Cap, Average Daily Volume, % off High, Volume % change VS. 50-DMA, Daily Price % Change, Current price, ROE%, % VS. Pivot.

Where can I see your recommended stocks? : You can refer to Current Holding in India Model Portfolio list or the Growth 50 list for our recommendations. Please note, Growth 50 is an algorithmically generated list and it gets updated once a week, every Friday.

How do I get a list of stocks from the top 20 Industry Groups? : Click the Idea Lists button on the home page, followed by the "Filter India Stocks" button under the "MarketSmith Reports" panel. Once this is completed, tap the button on the top right corner labelled either as "Filter Off" or "Filter On." This section enables you to create your custom stock screens using various criteria, including MarketSmith India's proprietary ratings and rankings. You can view stocks using the "Group Rank" button, which are great (1-20), good (21-40), fair (41-60), or poor (61-197). You can use the additional filters to customize and strengthen your list of stocks.

What are the initial criteria applied before CANSLIM criteria is used? : At MarketSmith India, we look at two criteria for the initial screening of stocks before and further examining for CANSLIM traits.

  • Market Capitalization of INR 600 crore or more.
  • 50-Day Average daily trading turnover of INR 1 crore or more.

Why do you send out recommendations post market hours? : CANSLIM methodology would gauge the breakout based on the close price and the volume of the day. Stock closing above the pivot with above average volume indicates strength and hence, we recommend stocks post market hours.

How do I select four to five stocks from the Model Portfolio? : The number of stocks in the model portfolio could range anywhere from 1 to 40. The model portfolio represents Model stocks and how to enter them at their Ideal buy points. While it is not advised to add every single model portfolio stock to your portfolio, investors are advised to select the best of the stock ideas which appeal to them. Holding a few good ideas can generate the required returns, when purchased at proper buy points, and when strict sell-rules are followed. While the model portfolio could have a higher number of stocks, going up to 40, it is only an indicative list on screening for CANSLIM stocks and entering them at their ideal buy points. Please refer Current Holdings Near Buy Point for actionable stocks at any given point of time.

Can you give a target price and time period? : We do not recommend stocks based on a specific time period or target price. Our model portfolio recommendations have spun as short as a few days or weeks, or it could even take few months before they generate the desired level of returns (20-25% profit booking level). The CANSLIM methodology follows the below sell-rules.

  • Stop-loss at 8-10% below your purchase price.
  • Profit booking level of 20-25%.
  • Break below the stock's 50 or 200 DMA support level on high volumes
  • The only exception when we have a specific time frame is when a stock jumps more than 20%
  • very rapidly from a proper base in under three weeks, we would like to hold stocks for a minimum of eight weeks.

Can I buy a stock, if it is trading below the recommended price? : At MarketSmith India, we would ideally take a new position in a stock within a range of 5% from its Pivot price. It means that the lower limit of the buy range would be the pivot price, and the upper limit is 5% over the pivot price. In case the stock price falls below this buy range, it is suggested to wait for the stock to come back into the buy range before exercising new buy orders. However, if the investor is convinced and confident about the growth story, he may as well take an aggressive entry that would help in capturing the up-move from current price to pivot. By this we mean that even if the stock falls below the buy range, after our recommendations, a good quality stock will eventually move up in the subsequent trading sessions.

How often does "Greatest Improvement In Masterscore" change? Can the list of stocks in this screen change daily? This list features companies with the greatest improvement in Masterscore. The list is updated every day and Current Masterscore must be at least 68 and 5% better than last week. A special screen is used to eliminate most stocks that are extended in price.This proprietary rating is composed of earnings, sponsorship, relative strength, group rank and other factors that may influence the future stock price. A large improvement in Masterscore could lead to a stronger performing stock.

In general, concentrate your investment research on stocks with a rating of B or better. Escorts's rating is B. The ratings range from A to E, with stocks with master score >=80 rated as A, 60 to 80 rated as B, 40 to 60 rated as C, 20 to 40 rated as D and 20 to 1 rated as E.

Why don't you recommend Penny / cheap Stocks? Regardless of how much money you want to invest in stocks, it's always a good idea to avoid cheap stocks. The market is an auction place in which stocks sell for what they're worth at the time. So when you buy cheap stocks, you get what you pay for. Our studies of the best-performing stocks found that not many penny stocks made huge advances. Keep in mind that institutional investors – who do most of the trading in the market and can really make a stock move- generally avoid low-priced stocks. You should focus on stocks priced at least Rs 50 a share. We don't consider penny stocks because in most cases they're cheap for a reason.

However, if you still want to look for cheaper stocks you could look at stocks listed under Guru Screen - Warren Buffett. This screen emphasizes metrics looking for companies with long term past and potential future growth. Of the stocks returned by the screen, Buffett most likely would emphasize those trading at reasonable prices. The stocks having Market Capitalization greater than 500 crore and Average Rupee Volume greater than 10,000 are considered to filter stocks for the list.

How do I screen stocks based on certain parameter? : On clicking Filter India Stocks under Idea Lists, you can see an option to Filter and sort the list of stocks. The list of stocks can be filtered by five of our proprietary ratings (Master Score, EPS Rating, Price Strength, Buyer Demand, and Group Rank) and eight other common parameters (Market Cap, Average Daily Volume, % off High, Volume % change VS. 50-DMA, Daily Price % Change, Current price, ROE%, % VS. Pivot.

How do I get a list of stocks from the top 20 Industry Groups? : Click the Idea Lists button on the home page, followed by the "Filter India Stocks" button under the "MarketSmith Reports" panel. Once this is completed, tap the button on the top right corner labelled either as "Filter Off" or "Filter On." This section enables you to create your custom stock screens using various criteria, including MarketSmith India's proprietary ratings and rankings. You can view stocks using the "Group Rank" button, which are great (1-20), good (21-40), fair (41-60), or poor (61-197). You can use the additional filters to customize and strengthen your list of stocks.

What is Evaluation?

The MarketSmith India Evaluation gives you an unbiased instant assessment of more than 3,900 stocks. Quickly evaluate a stock's rank with our Master Score, a summary proprietary rating, which is based on the EPS, Price Strength, Buyer Demand, and Group Rank ratings.
The Evaluation view is composed of a stock chart and the stock-specific data in the Details Tab. This view efficiently combines the key stock information you need to validate your decision to buy or sell or to commit to further research.
The Chart Overview support content will provide you with an orientation of the data items available on the chart and how they may be used to quickly evaluate a stock.

Evaluation Page

Where is buy price and exit price?MarketSmith India follows CAN SLIM, a growth strategy developed by our founder, William O'Neil. According to an independent, real-time study of more than 50 leading strategies by the American Association of Individual Investors, CAN SLIM is rated as one of the top strategies. Please watch videos listed here https://marketsmithindia.com/mstool/investingVideos.jsp to know more about our methodology or attend our webinar of CAN SLIM.

The buy and exit price range can be identified by the blue and pink colour on the chart which appears post a stock breaks out of a chart pattern.

What is Master Score Rating? : The MarketSmith Master Score combines characteristics of the most successful stocks into one easy to use rating. The formula incorporates earnings growth, relative price strength, price-volume characteristics, industry group relative strength, and other factors. In general, concentrate your investment research on stocks with a rating of B or better.

What is EPS Strength? : Great earnings growth is what separates the best stocks from crowd. But it is not enough to just have one or two periods of solid growth. A standout stock needs both a sound growth record in recent years, and a strong current earnings record in the last several periods. As a shortcut for identifying such stocks, the MarketSmith developed its Earnings per Share (EPS) Rating. Indian stocks are ranked on a 1-99 scale with 99 being the best. The MarketSmith India suggests focusing your efforts on stocks with an EPS Rating of at least 80.

What is Price Strength? : Human nature being what it is, most people invest backwards. They want to buy what is the down the most and sell what is up. The best stocks are superior price movers even before their big price moves. You should look for stocks with price leadership. The MarketSmith Relative Strength (RS) rating shows you which stocks are the best price performers by measuring the stock's performance over the previous 12 months. That performance is then compared with the performance of all other publicly traded companies in India on 1-99 scale, with 99 being the best. MarketSmith India suggests focusing your efforts on stocks with an RS Rating of 80 or more.

What is RS line? : Relative Strength (RS) Line: The relative strength line compares a stock's price performance versus the benchmark / index. Many charting services plot a RS Line along with the stock's price, moving averages, etc. The line is derived by dividing the stock price by the benchmark / Index value. An upward sloping line means that the stock's price is outperforming the benchmark / Index.

What is Buyer Demand or Accumulation/Distribution Rating? : Professional investors wield a huge amount of influence over stock's price. Thus, it is essential that you buy the better stocks that professionals are buying and you may sell or avoid the ones that they may be selling heavily. A quick way to keep a track of the end results of professional trading is the MarketSmith Accumulation/Distribution Rating, which is based on daily price and volume changes. It tells you, whether your stock is under accumulation (professional buying) or distribution (professional selling). Stocks are rated on an A-E scale, with A being the best. Generally, you should confine your purchases to C or better.

What is Industry Group Rank? : The majority of leading stocks are usually in leading industries. MarketSmith India studies show that roughly half of stock's move is driven by the strength of its respective group. MarketSmith India divides stock into 197 industry groups. It then ranks them on six-month price performance, with the number 1 group being the best performer. Concentrate your research on stocks in the top 40 groups.

What is Pattern recognition? : The founder of MarketSmith, William J. O'Neil, is one of the pioneers of technical stock analysis. In the studies conducted to identify of what works in the stock market are key patterns on stock charts that many of the biggest winners formed before they went on to huge gains. MarketSmith India's Pattern Recognition feature helps you spot these patterns.
The Pattern Recognition feature includes the following elements: Chart Pattern: The solid dark green underscore identifies the pattern. Pivot Line: The dashed dark green line represents the pivot line. When a stock passes the pivot line, it is a sign of technical strength. This is an ideal entry point to buy a stock.

Tight Area : Aqua blue highlights represent Tight Areas, which are identified when a stock closes within a 1.5% price range for at least three consecutive weeks. Tight Areas can be a sign of strength and serve as alternate entry points.

Chart Overview Would you trust a doctor who never looked at an X-ray or an MRI? How about a navigator that never looked at a map?
What an X-ray is to a doctor, a price-volume chart is to a stock investor. Price changes are the result of the daily supply and demand in the large auction marketplaces that stock markets represent. Our founder, William J. O'Neil, was a pioneer in using stock charts to identify the optimal times to buy and sell stocks. The charts in our application reflect his research of over 50 years on what is most critical in making profitable investing decisions.
In this section, we will go into detail on how to read our Daily and Weekly price charts and what the different indicators mean and how they can be valuable for your investing.
To start, here is a visual overview of our weekly chart view for Android. Below we go into more detail of how to use these indicators.

Weekly Chart

The Basics The two main components to our stock chart are the Price section at the top, and the Volume section below.

In the Price section, the vertical price bars show you the stock's price range for that day (on a daily chart) or for the week (on a weekly chart). The horizontal slash shows you the stock's closing price. In general, you would prefer stocks that tend to close at the top of their ranges, a sign of strength.

When a day or week finishes up in price, it is colored in blue. Down days are colored in magenta. You can cross reference each price bar to its volume bar down below. When a stock moves higher in high volume, it is a sign that institutional investors may be accumulating shares. On the other hand, if it starts to move lower on increasing volume, it could be a sign that institutional investors are heading for the exits.

We include two important moving averages on our charts by default, the 50-day moving average(10-week on weekly) in red and the 200-day moving average (40-week on weekly) in black. Since institutional investors track these levels closely, they are key support levels for a stock. A powerful stock will tend to bounce off these levels to higher prices.

We also include a 50-day (10-week on weekly) moving average in red next to the volume bars. This is a quick visual indicator if volume for that period is above or below normal. The number next to Vol in the volume area is the Volume rate. That compares the volume for the day or week against its average volume. A +34% rate would mean the volume was 34% above average for the most recent volume node.

In blue beneath the price bars is a Relative Strength line. This plots the stock's performance to the larger market as represented by the Sensex/Nifty index. If the stock is outperforming the Sensex/Nifty, its relative strength line will move higher. If it is underperforming, the line will drop. The number next to the RS line is our RS Rating which ranks all stocks on 12-month price performance on a 1 to 99 scale, with 99 being the best performing stocks. We prefer to concentrate on stocks with Relative Strength Ratings of 80 or higher.

Chart Scaling Our default scale for a weekly chart is a logarithmic (log) scale. Logarithmic scale intervals are based on percentage or proportional changes. For example, the percentage change from 1 to 2 (100%) is same as the movement from 2 to 4 (100%), 4 to 8 (100%), etc. We use a fixed log scale to ensure that the same amount of physical distance is used for similar percentage moves. This lets you quickly determine different characters among various stocks, from a stock that doesn't move very much to a more volatile one.

The default scale for the daily chart is linear (lin). Linear scales use equal spacing between each value. This means that a move from 1 to 2 looks that same as a move from 10 to 11. This can let you see moves in greater detail.

If you prefer an alternative view, you can toggle the scale between log and linear by tapping on the vertical scale area. The same can be done for the volume scale.

Pattern Recognition The founder of MarketSmith, William J. O'Neil, is one of the pioneers of technical stock analysis. In his studies of what works in the stock market he identified key patterns on stock charts that many of the biggest winners formed before they went on to huge gains. MarketSmith India's Pattern Recognition feature helps you spot these patterns.

The Pattern Recognition feature includes the following elements: Chart Pattern The solid dark green underscore identifies the pattern.
Pivot Line The dashed dark green line represents the pivot line. When a stock passes the pivot line, it is a sign of technical strength. This is the ideal entry point to buy the stock.
Tight Area Aqua blue highlights represent Tight Areas, which are identified when a stock closes within a 1.5% price range for at least three consecutive weeks.
Tight Areas can be a sign of strength and serve as alternate entry points. Profit Range The box with the light green background, 20% to 25% above the pivot, is an area O'Neil recommends you consider locking-in initial gains.
Buy Range The buy zone, 0% to 5% from the pivot price, is represented by a box with a light blue background.
Loss Range The box with the pink background highlights 5% to 8% below the pivot price. To manage risk, O'Neil recommends that you limit losses to no more than 8%.

In order to understand the charts and product better and take advantage of the same, we request you to watch these small videos.

The videos and many other videos are available here https://marketsmithindia.com/mstool/investingVideos.jsp

How to add Moving Average lines?The 50 DMA and 200 DMA lines on Daily chart and 10 and 40 Week Moving Average lines on Weekly chart are included by default. However, if you cannot see the same, you can click on the chart settings wheel which is right next to periodicity tabs at the bottom of the chart and make sure you click on reset to defaults on all the three periodicities, Daily, Weekly and monthly.

In case you want to include or edit the moving average lines, you can do that same by clicking on the chart settings wheel.

Earnings Block

The default toggle of the block contains percentage changes for earnings and sales on a year-over-year basis along with the margin after tax for the period. We like to focus on stocks with strong earnings and sales growth with strong and improving margins. The biggest winners often have earnings and sales growth of 25% or more. Pay particular attention to stocks with accelerating growth. Our studies have shown this is a potential sign of a great stock.

The alternative toggle of the earnings block provides the actual values on an earnings and sales basis along with the P/E Range for the period.

Can we see real-time price and volume on the product? NSE intraday price quotes on MarketSmith India are delayed by about 2 minutes while BSE intraday Price and all volume quotes on MarketSmith India are delayed by about 20 minutes.

What does green, blue and pink shade in charts indicate?
Details Tab:

1. Company Information

Industry Group - A proprietary classification of stocks into 197 groups, based on a company's major source of revenue, competitors, products, markets served, etc. Stock prices for stocks in the same Industry Group tend to trend together.

Headquarters - The location of a company's main offices.

Web Address - URL Address where a company provides information via the Web.

Company Description - A brief description of the company's operations. This summarized item is based on the information provided in the company's annual report. It is updated annually or when major changes in company operations occur.

2. Stock Information

Market Capitalization - The total market value of the company, which is calculated by multiplying shares outstanding by the stock price. Companies with more than one class of common stock will display two sets of figures: The first data item is the market capitalization for all classes of common stock. The second figure (inside parentheses) is the market capitalization of the class that is being viewed, and not necessarily the "primary" class.

Sales - Annual sales as of the company's most recently completed fiscal year.

Shares in Float - Number of shares owned and available to the public for trading. This amount represents the total capitalization less restricted shares, insider positions, and shares held by management. If this data field is blank, all company shares outstanding are considered to be available for public trading (Float Supply will equal Shares Outstanding.)

3. Annual Earnings

Fiscal Year End - The end date of the 12 month period used by a company for accounting purposes. Does not necessarily correspond to the calendar year end. Indicated under the Year label.

Earnings Per Share, Annual Results - When available, up to eight years of annual earnings per share results will be displayed. Results are adjusted for stock splits, restatement of earnings, and/or related items in order to provide truly comparable data.

Price Range, 52-Week High/Low - Indicates the highest and lowest price the stock has reached in the last 52 weeks of trading. Price range data includes intra-day highs and lows.

4. Stock Ratings

Master Score - The MarketSmith Master Score incorporates earnings growth, relative price strength, price-volume characteristics, industry group relative strength, and other factors to create one easy to use rating of stocks that share similar characteristics of the most successful stocks in our historical studies. In general, concentrate your investment research on stocks with a rating of B (60) or better.

Earnings Per Share (EPS) Rating - The EPS Rating compares a company's earnings per share growth with all other domestically traded companies in our database. Stocks are rated on a 1 to 99 scale (best), based on a calculation that combines the company's two most recent quarters of earnings per share growth with its three-year to five-year annual growth rate. Strong earnings are essential to propel a stock upward in the market. Based on our studies of history's greatest outperforming stocks, we prefer stocks with an EPS rating of 80 or better.

Price Strength = Relative Strength (RS) Rating - The Relative Strength Rating shows you which stocks are the best price performers over the previous 12 months. The performance is then compared with the performance of all other publicly traded companies in India on a 1 to 99 scale, with 99 being the best. Based on our studies of history's greatest outperforming stocks, we prefer stocks with an RS Rating of 80 or better.

Accumulation/Distribution (Acc/Dis) Rating® - The Accumulation/Distribution Rating measures the degree to which the market is buying (accumulation) or selling (distribution) a particular stock over the past 13 weeks. Since stock prices are directly affected by how many investors are buying or selling it, this rating helps you determine a stock's most likely future direction. A=Heavy buying, B=Moderate buying, C=Equal amount of buying and selling, D=Moderate selling, and E=Heavy selling. Based on our studies of history's greatest outperforming stocks, we prefer stocks with an Investor Demand rating of "C-" or better.

Group Strength = Industry Group Rank - The Industry Group Rank measures a stock's industry group performance over the past six months. History shows that the biggest advances come from quality stocks in the strongest industries. The upward movement of a whole industry boosts the potential of stocks within the group. This rating grades all 197 Industry Groups from 1 (best) to 197 (worst), so you can focus on the best groups. Based on our studies of history's greatest outperforming stocks, we prefer stocks with an Industry Group Ranking of 1 to 40.

5. Key Financial Stats

Yield - This figure represents the relationship of an annualized dividend to a stock's price. To create this figure, we "annualized" (multiply by pay frequency) the most recently paid dividend and divide it by the prior day's closing price. When a stock does not pay a dividend, the data item will be reported as NONE.

Book Value x (Value) - Calculated by dividing the current price by the per share book value (total shareholders equity for fiscal year-end divided by common shares outstanding.)

Up/Down Volume Ratio - A 50-day ratio that is derived by dividing total volume on up days by the total volume on down days. A ratio greater than 1.0 implies positive demand for a stock.

EPS Growth Rate, 3-5 Year - The average earnings per share growth rate over the last 3-to-5 year period based on a trailing four-quarter count. The amount of time used for this calculation will consist of at least three years but no more than five years of positive earnings per share. The biggest stock market winners historically showed an annual earnings growth rate of 25% or more before they made their huge gains.

Earnings Stability - Lower numbers represent more stable company earnings history. Higher numbers represent a tendency for more volatile or unpredictable earnings history.

Price/Earnings (P/E) Ratio - The P/E ratio is computed daily using the most recent closing price and the latest trailing 12 months of earnings.

Price/Earnings (P/E) Ratio, 5-Year Low/High Range - Represents the lowest and highest Price/Earnings Ratio range a stock experiences over a period of up to 5 years. A P/E ratio is derived by dividing a closing price by the summation of the latest four quarters of earnings.

Return on Equity - Presented as a percentage figure, it is derived by dividing annual income by an average of the latest fiscal year and the prior year's stockholders equity. Brackets [ ] will surround the ROE percentage if the net income being used to derive the data is not from the most recently completed fiscal year and will indicate the year the percentage figure corresponds to. As an indicator of a company's financial performance, it measures how efficient a company is with its money. The biggest stock market winners historically showed an ROE of 17% to 50% before they made their huge gains.

Cash Flow Per Share From Operations - Derived by adding depreciation, depletion and amortization to the company's net income and dividing this figure by the shares outstanding. Brackets [ ] will surround the Cash Flow figure if the net income being used to derive the data is not from the most recently completed fiscal year and will indicate the year the figure corresponds to.

Debt - Expressed in percentage, this figure is based on fiscal year-end values, dividing the long-term debt (including lease obligations, convertible debt and mortgages) by shareholders equity.

Alpha - An expression of how much a stock would have appreciated or depreciated on average on a daily basis over the last year, assuming the market index remained unchanged during the period. For example, an ALPHA of 0.1 means the stock's price would have appreciated at the rate of 0.1% per day over the last year, assuming an unchanged market index. At least 260 days of price history are needed to compute the Alpha data item. It is updated daily after the market close.

Beta - Measures a stock's price volatility relative to price performance of the market index, over a 12-month period. Beta values range from 9.99 (positive) to -9.99 (negative). A stock with a high beta coefficient (in absolute terms), such as 2.50 or -2.50, is likely to have greater price percentage movement relative to the market index. Conversely, a stock with a low Beta coefficient (in absolute terms), such as 0.75 or -0.75, will have the tendency to rise or fall in price more slowly than the market index. At least 260 days of price history are needed to compute the Beta data item. It is updated every day after the market close.

6. Quarterly Earnings

Earnings Per Share, Interim Period Comparison - Interim period earnings per share compared to earnings in the same interim period of the previous year. Amount is based on continuing operations.

Earnings Per Share Percentage Change - Percentage change in earnings per share compared to the same interim period of the previous year. Figures in blue represent an increase in earnings from prior year interim period, whereas figures in magenta indicate a decrease in earnings per share. The biggest stock market winners historically showed an interim period earnings growth rate of 25% or more before they made their huge gains.

Sales, Interim Period Comparison - Most recent interim period sales amount versus sales amount of same interim period in the previous year.

Sales, Percentage Change - Percentage change in sales compared to the same interim period of the previous year. Figures in blue are equal to, or greater than sales from prior year quarter, whereas figures in magenta indicate a decrease in sales.

Market Outlook

What is Market Condition? : The general direction of the stock market affects individual stocks, corresponding to it the tide raises or lowers all ships. Understand the market's impact on your stocks which makes you know whether to set sail or be an abandoned ship. MarketSmith India has an objective way of analyzing the market, and we classify the market into four different conditions.
Confirmed Uptrend: Best time to buy stocks
Uptrend Under Pressure: Proceed with caution
Market in Correction: Avoid fresh buys
Rally Attempt: Wait for the market to follow through or strong price action in leading stocks before acquiring new positions

Portfolio Evaluation

What is PortfolioSmith? : PortfolioSmith is a portfolio evaluation tool that uses algorithms to provide a quick analysis of your portfolio or its constituent stocks and make recommendations based on the CAN SLIM methodology. You can evaluate your current portfolio to make sure you are on the path to maximize wealth creation. PortfolioSmith makes it easy to diagnose your stock ideas and see if they earn a pass, neutral, or fail score for the ratings and other critical technical and fundamental factors.

Who is analyzing my portfolio? : PortfolioSmith algorithmically evaluates your portfolio and provides recommendations based on the CAN SLIM methodology by using machine learning and AI. We are trying to incorporate all aspects an analyst would look into. This helps us provide an unbiased report/evaluation in less than a minute for up to 100 stocks.

Why 13 or 52 reports per quarter/year? : We believe evaluating your portfolio once a week will give you vital insights to take further steps to protect capital and maximize wealth creation.

How can I upload my transactions?You can upload your transactions using one of the following options:

  • Upload your Zerodha Traderbook
  • Select custom and upload transactions in the format provided in the sample csv file
  • Manually enter the transaction
  • Import transactions from MarketSmith India My Portfolio.

What is the rationale for recommendations? : We base our recommendations on the CAN SLIM growth investing strategy. It considers both fundamental and technical aspects to give BUY/SELL ratings.

What is the rationale for increasing or decreasing allocation in a particular stock? : We use portfolio allocation models to arrive at the optimal allocation for each stock in the portfolio.

How often do the recommendations change? : There is no fixed time period for the change in recommendations. Since price and moving averages are also considered, the recommendations can change as early as one day or continue to remain the same for a longer duration too.

Should we enter split adjusted prices? : No, you can enter your actual buy and sell prices. The system will apply the required split factors.

Why does it say "We do not support short selling transactions, please exclude them or include the corresponding Buy transaction too"? : The analysis does not consider short selling. Please make sure you have included the corresponding buy transaction for each sell. The sell quantity for a stock should be less than or equal to the buy quantity of the stock. Also, make sure the buy transaction date is older than its sell transaction date.

Why is the performance section blank? : The performance section includes best winners/exclusions and worst losers/exclusions. This is arrived at by considering the position you have closed. In case you have not included any closed position/sell transactions, this section will not populate.

What if I don't use all my 13 reports within the 90 days? : The monthly, quarterly, and annual subscription is valid only for 30, 90, and 365 days, respectively. If you do not generate the given reports, they will expire/lapse at the end of your subscription days.

Is there any transaction cost that you consider while calculating Profit/Loss? : No, we do not consider transaction cost in our calculations.

The report asks me to sell certain stocks. Which stocks should I buy now? : The tool identifies weak stocks for SELL recommendations. Also, if you are over invested in any particular stock, you will be asked to REDUCE. This will lead to cash balance. To know which stock you should buy, you can subscribe to our Model Portfolio or Algos in AlgoSmith.

Recommendations

IPO Stocks : We do not recommend buying an IPO. The main reason for not recommending buying an IPO on its first day of trading or before is that there is no stock chart available to help you evaluate the stock. Further, it is difficult to determine whether or not an issue is overpriced since there is no well- established market for IPOs. Some issues may be hyped up or heavily oversubscribed, causing the stock to open far above the price set by the underwriter. Many investors who place market orders to buy shares of IPO's on the first day of trading find that their orders are executed at prices far higher than they would have expected. By waiting until an IPO has been trading in the marketplace for two or three months or more, you have additional valuable market price and volume action data on which to judge the situation.
After its initial public offering (IPO), it can take weeks, even months, for a new stock to establish a price range where investors feel comfortable. You can also read our article on IPO The safest time to buy an IPO is on the breakout from its first correction and base-building area. https://marketsmithindia.com/mstool/marketOutlook.jsp#/posts/2020091902

Target Price : We at MarketSmith India, identify stocks which have strong fundamentals and institutional holdings. We add a stock to our model portfolio when it breaks out from sound base patterns with high volumes. As per our methodology, we do not predict a Target Price or the time horizon in which a target price would be reached. We hold the stock until there is no technical weakness or any negative factor we observe to remove the stock.

RS Blue Dot : Blue dot is a confirming tool or as a leading indicator while it’s still forming a base. This would give enough time to prepare for the potential breakout. Earlier we can get them on our radar, we get enough time to research and take a position at the right buy point / breakout.
The more number of dots indicates that the stock is trending upwards making new RS highs and might breakout soon. The ideal buy point would be what we call the pivot, representing an area of resistance i.e., a price ceiling at which the stock has previously encountered selling. https://marketsmithindia.com/mstool/blueDot.jsp#/

Trend Template : We have in-built screens on Mark Minervini’s Trend Template under Idea List.
A. The 1-Month Template is sort of a “heads up” screen, where you’re able to see the early turn in a stock as it starts to transition into an uptrend. The 200-day moving average has only been trending for 1 month. That gives some lead time if you start watching and see if it confirms and ends up rolling over to the 5-Month Template. The other thing, too: high tight flags, your power play patterns, will sometimes run up very quickly and they don’t give the 5-month template enough time to pick it up. So, you can pick up a lot of high-tight flags in the 1-Month.
The 5-Month Template is the main qualifier. These are stocks that have had their 200-day moving average trending up for at least 5 months. The names that show up on this screen (the ones that have proved themselves to be in a Stage 2 uptrend) are the ones I watch closely and consider buying, but only if they emerge from a constructive base.https://marketsmithindia.com/mstool/ideaLists.jsp#/52/81

Portfolio Evaluation

What is PortfolioSmith? PortfolioSmith is a portfolio evaluation tool that uses algorithms to provide a quick analysis of your portfolio or its constituent stocks and make recommendations based on the CAN SLIM methodology. You can evaluate your current portfolio to make sure you are on the path to maximize wealth creation. PortfolioSmith makes it easy to diagnose your stock ideas and see if they earn a pass, neutral, or fail score for the ratings and other critical technical and fundamental factors.

Who is analyzing my portfolio? PortfolioSmith algorithmically evaluates your portfolio and provides recommendations based on the CAN SLIM methodology by using machine learning and AI. We are trying to incorporate all aspects an analyst would look into. This helps us provide an unbiased report/evaluation in less than a minute for up to 100 stocks.

Why 13 or 52 reports per quarter/year? We believe evaluating your portfolio once a week will give you vital insights to take further steps to protect capital and maximize wealth creation.

How can I upload my transactions? You can upload your transactions using one of the following options:

  • Upload your Zerodha Traderbook
  • Select custom and upload transactions in the format provided in the sample csv file
  • Manually enter the transaction
  • Import transactions from MarketSmith India My Portfolio.

What is the rationale for recommendations? We base our recommendations on the CAN SLIM growth investing strategy. It considers both fundamental and technical aspects to give BUY/SELL ratings.

What is the rationale for increasing or decreasing allocation in a particular stock? We use portfolio allocation models to arrive at the optimal allocation for each stock in the portfolio.

How often do the recommendations change? There is no fixed time period for the change in recommendations. Since price and moving averages are also considered, the recommendations can change as early as one day or continue to remain the same for a longer duration too.

Should we enter split adjusted prices? No, you can enter your actual buy and sell prices. The system will apply the required split factors.

Why does it say "We do not support short selling transactions, please exclude them or include the corresponding Buy transaction too"? The analysis does not consider short selling. Please make sure you have included the corresponding buy transaction for each sell. The sell quantity for a stock should be less than or equal to the buy quantity of the stock. Also, make sure the buy transaction date is older than its sell transaction date.

Why is the performance section blank? The performance section includes best winners/exclusions and worst losers/exclusions. This is arrived at by considering the position you have closed. In case you have not included any closed position/sell transactions, this section will not populate.

What if I don't use all my 13 reports within the 90 days? The monthly, quarterly, and annual subscription is valid only for 30, 90, and 365 days, respectively. If you do not generate the given reports, they will expire/lapse at the end of your subscription days.

Is there any transaction cost that you consider while calculating Profit/Loss? No, we do not consider transaction cost in our calculations.

The report asks me to sell certain stocks. Which stocks should I buy now? The tool identifies weak stocks for SELL recommendations. Also, if you are over invested in any particular stock, you will be asked to REDUCE. This will lead to cash balance. To know which stock you should buy, you can subscribe to our Model Portfolio or Algos in AlgoSmith.

Glossary

While investing in the stock market, you will come across various technical terminologies. Worry not! We have accumulated all of them in one place and defined them for you. If there is anything that you do not find here, we advise you look in our Investing University to have an in-depth explanation for the same.

Ageing of a Distribution Day : A distribution day becomes too old if it is no longer within the window of last 25 trading sessions. The distribution day is then dropped due to age and the total distribution day count reduces accordingly.

Ascending Base : The ascending base may be tougher to spot because it has more moving parts. The pattern often takes shape as a stock tries to rise during a choppy or tired market. But once a strong uptrend takes hold in the broader market, the stock has the potential to break out to new highs. An ascending base typically starts forming after a stock has already staged a prior breakout and gained at least 20% -- so it's usually not a first-stage pattern. As with other bases, you'd ideally see a strong prior advance on the stock's chart.
So what does an ascending base look like? It consists of a series of three pullbacks, each ranging from about 10% to 20% from the most recent high to low. Each of the pullbacks must mark a higher high and a higher low -- thus, the ascending base.

Accumulation/Distribution Rating : Accumulation/Distribution is a proprietary rating calculated as an exponential moving average of inter- and intra-day price and volume statistics. The effect of a single day's trading becomes insignificant after about 60 days. The ratings range from A to E. An A or B rating means a stock has been showing accumulation. C is a neutral rating, and a D or E means a stock has been under distribution.

Because the pattern is created by three distinct pullbacks, it can take longer to form than most other bases, roughly 9 to 16 weeks.
To get the buy point in an ascending base, add 10 paisa to the high of the third pullback, like you would with other IBD patterns. Likewise, don't buy if it's extended more than 5% past the proper entry.

BreakOut : A breakout occurs when a stock's price rises above its resistance level, i.e., a price ceiling at which the stock has previously encountered selling. This price ceiling is known as pivot. When a stock charges above the pivot on above-average trading volume, there is a high probablity that it will move even higher. We like to see volume at least 40% to 50% above average on the breakout day.

Base Pattern : A base is a term used by technical analysts to refer to a type of stock chart pattern. Base patterns indicate periods when a stock levels off or corrects after having advanced for a while; a base is just another term for a period of consolidation. There are several different base patterns, including the cup-with-handle, cup, double bottom, flat, and consolidation base.

Buy Range : A stock is considered to be in an ideal buy range if it is close to its pivot price and has not extended by more than 5-7% from the recent pivot.

Confirmed Uptrend : A Confirmed Uptrend market status indicates the Nifty is in an uptrend. The uptrend begins with a follow-through day or when the index reclaims its previous uptrend high. At this stage, the index is not showing signs of significant distribution or heavy selling by institutional investors. This is the perfect time to be looking out for fundamentally strong stocks at proper buy points.

Correction : A major index generally goes into Correction when the number of distribution days in the last five weeks rises to 5-6. The index has typically declined 5-7% or more from its recent high. Also, the index most likely breaches its support levels of 50-day and 200-day moving averages. Investors should avoid new purchases, get off margin, and raise cash. This is a good time to build your watch list of fundamentally-strong stocks that you would like to own when market condition improves.

Cup With Handle : A stock chart pattern discovered by MarketSmith founder William J. O'Neil, this pattern on a high- low-close bar chart looks like a cup with a handle when the outline of a cup is viewed from the side.

Consolidation : A consolidation is just another term for a base. Base patterns indicate periods when a stock levels off or recoups after having advanced for a while.

Double Bottom : A stock chart pattern identified by MarketSmith founder William J. O'Neil, this pattern looks like the letter W. In almost all cases, the second leg down should undercut the low price of the first leg. This ensures weak investors in the stock are shaken out.

Distribution Day Count : The count refers to the number of distribution days in the last 25 trading sessions. It is reset to zero whenever the market status is changed to Correction. The distribution day count resumes from zero when the market enters into a Confirmed Uptrend. Distribution days are dropped if the Sensex has advanced 5% or more from the close of a particular distribution day or the distribution day has aged out i.e. fallen out from the 25 trading session window. This lowers the overall count.

Distribution Day Reversal : Once an index rises 5% from the close of a particular distribution day, it signals strength in the market. In such cases, we drop off that distribution day from our count, thereby reducing the number of distribution days in the last 25 trading sessions.

Distribution Day : A distribution day is indicated by a major market index such as the Sensex closing down 0.2% or more on higher volume than the previous day. Distribution in the stock market refers to the increased selling of stock by large institutions. The number of distribution days on the Sensex helps us in tracking the general market condition. Our studies have shown that four to six days of distribution over a period of five weeks are often enough to turn a previously advancing market into decline. Once you notice increasing distribution, it is best to hold off on any further stock purchases, and perhaps even cut back on some of your positions, especially if you are on margin.

Down In Price : Top stocks which are being SOLD heavily by institutional investors. Stocks must have a daily price change of -1/2 point or more with a volume change of 1/2 point or more as compared to 50 day average volume.

Extended : A stock becomes extended from its buy point, if it rises more than 5-7% from the pivot. Buying extended stocks is considered to be a lot risky, since a normal retracement in the stock could force us to sell it due to our 8% stop-loss rule. Winning stocks often experience retracement before they move higher.

Follow-Through Day : A follow-through day is identified when a major index (Sensex or Nifty 50) closes significantly higher, over 1.5% for the day, on higher volume than the previous session. It happens on fourth day or later of an attempted rally. The most powerful follow-through days often happen on fourth through seventh day of an attempted rally. They serve as a confirmation that the market has really changed direction and is in a new uptrend. The strength in a follow-through day can be gauged by the action in leading stocks. A follow-through day coupled with leading stocks breaking out from their base patterns provides signs of a sustainable rally. A follow-through day is a key concept in the market- timing system developed by MarketSmith founder, William J. O'Neil.

Flat Base : A stock chart pattern studied by MarketSmith founder William J. O'Neil, a flat base moves straight sideways in a relatively narrow price range. Flat bases often occur after a stock runs up after breaking out of one of the other chart patterns.

Gap Up : Gap up represents a strong up day in the stock market, when the Sensex low of the day in question is higher than the index high on the previous day.

Growth 50 Index : The Growth 50 Index tracks the performance of stocks listed in Growth 50, a proprietary list of the 47 top-ranked companies generated every Monday. Companies are ranked based on superior fundamentals and strong price performance over the last 12 months. It is a weekly computer- generated ranking of leading companies trading in the Indian market.

Gap Down : Gap Down represents a weak day in the stock market, when the Sensex high of the day in question is lower than the index low on the previous day.

Market Cap classification:

  • >500 crore – Micro Cap
  • 500-5,000 crore Small Cap
  • 5,000-20,000 crore Mid Cap
  • >20,000 crore Large Cap

Number of funds : Total number of Mutual funds holding a position in the stock as of the last reporting period

OFF High(OH) : OFF High provides an idea about where the stock is currently trading in comparison to its 52-week high price in percentage terms. The formula to calculate OH is current price minus 52-week high price divided by 52-week high price.

OFF Low(OL) : OFF Low provides an idea about where the stock is currently trading in comparison to its 52-week low price in percentage terms. The formula to calculate OL is current price minus 52-week low price divided by 52-week low price.

Pivot : A pivot represents an area of resistance i.e., a price ceiling at which the stock has previously encountered selling. In our study of winning stocks and their technical breakouts, we have identified pivot as an optimal buy point. When a stock charges above the pivot on above-average trading volume, there is a high probability that it will move even higher.

Power from Pivot Flag : Stocks advancing in price 20% or more within 15 days (3 weeks) after breaking out above their pivot are marked with a Power from Pivot flag on the chart when our Pattern Recognition feature is enabled. If you encounter this scenario with a stock that has good fundamentals and is looking strong technically, MarketSmith founder William J. O'Neil advises you consider holding the stock for at least eight weeks from the pivot to avoid getting shaken out of a stock that might have the possibility of being a big winner.

Pullback : A pullback happens when a stock falls from its recent high, facing some selling pressure post a technical breakout. This could be a temporary reversal, where weak investors sell off their positions based on the gains made from the initial surge in price, causing the stock price to come down.

Rally Attempt : A Rally Attempt begins the third day the index closes higher off the most recent bottom after being in a Correction (also known as Downtrend). During a Rally Attempt, we are on the lookout for a Follow-Through Day to confirm the trend has reversed and we have entered a Confirmed Uptrend. A Rally Attempt fails and the index goes back into a Correction if it undercuts the most recent low.

Resistance : Resistance refers to a price level at which the stock has previously encountered selling. A stock often faces selling pressure when it approaches its recent highs and this level could halt the stock's upward movement.

Relative Strength Rating : The Relative Strength Rating looks at a stock's percentage price change over the last 12 months with most recent periods receiving higher weight. All stocks are arranged in order of greatest price percentage change and assigned a rank from 99 (highest) to 1 (lowest). For example, a value of 85 means the stock has outperformed 85% of all other stocks in India.

STOCKS ON THE MOVE : includes important daily list in MarketSmith India that highlights stocks that had the greatest percentage increase in volume above their normal past daily trading level. Usually a sign that institutions are buying or selling the stock.

Shares held by funds : Total number of shares of company's stock held by mutual funds as of last reporting date

Tight Areas : Tight area or a tight chart pattern is established when a stock trades tight and closes narrowly for three weeks in a row. In a tight chart pattern, the close of week two is within 1.5% of week one's close; and the close of week three is within 1.5% of week two's close. A tight area can be a great opportunity to add shares to a current holding. Often top-quality consolidations show tight trading. This pattern tends to work best with the market's top leaders like stocks with excellent fundamentals and price action. MarketSmith's Pattern Recognition feature will highlight the area with a blue oval when such a condition is reached.

Uptrend Under Pressure : An Uptrend Under Pressure market status is normally associated with rising number of distribution days on the Nifty. The index has 3-4 distribution days in the last five weeks and is showing some signs of deterioration. The index may be close to its 50-day and/or 200-day moving average support level, but is typically above at least one of the levels. Investors need to exercise caution and keep their buying decisions reserved to fundamentally strong stocks showing technical strength.

Up In Price : Top stocks which are being BOUGHT heavily by institutional investors. EPS & RS Rank must be a minimum of 70 and A/D Rating must be D+ or better. Stocks must have a daily price change of 1/2 point or more with a volume change of 1/2 point or more as compared to 50 day average volume.

50-DMA : The 50-day moving average, a simple average of the last 50 days' closing prices, provides the best balance between the long-term trend and immediate direction for a stock/index. Many institutions view the 50-day line as a level at which they can add to their positions at a reasonable price. This is the reason why quality growth stocks with good institutional sponsorship often find support around the 50-day moving average level. The 50-day is the most widely followed moving average by investors and analysts.

200-DMA : The 200-day moving average, a simple average of the last 200 days' closing prices is a key indicator for the long-term trend of a stock/index. It often acts as a support or a resistance level for the stock/index.

Account & Subscription section

MarketSmith India has four key sections to support your investment decisions: Idea Lists, Evaluation, Market Outlook, and Model Portfolio. You can get further detail on features by selecting the (i) buttons scattered throughout each section.

Is there any Trial Offer? Yes, we offer a 10 Days Trial at Rs. 1 Only. You can visit our Take a Trial page to avail the trial. Please note that an individual can take a trial only once.

What happens at the end of my trial? Once your trial ends, you will have basic access to our services. To continue Premium access, you will have to choose one of our subscription plans & subscribe to MarketSmith India.

How can I subscribe to MarketSmith India? You can subscribe to our services using the App or visit our website, marketsmithindia.com to Signup & subscribe to your preferred plan. Don't forget to check our Offers page to find current offers on subscription.

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Can I create my portfolio in Marketsmith India? Yes, you can create your portfolio in MarketSmith India.

Whom should I contact If I have questions related to one or more stocks? For any questions related to stocks, you can get in touch with our Research team. The contact details of our Research team are available on our Contact Us page.

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Refer & Earn Section

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