Technical & Price Action
Buying Zone — 50 DMA with Quality Filter is a Technical & Price Action screen. It checks every NSE-listed stock against 3 conditions computed from nightly data, after excluding heavily pledged promoters and very small market caps. This page explains the rule, each figure and its source. It lists no stocks and is not advice.
The 50-day moving average pullback is one of the most widely used technical entry frameworks in growth investing and swing trading. In a stock that is in a healthy uptrend, price typically oscillates above and below the 50 DMA, and pullbacks to or near the 50 DMA represent re-entry opportunities at lower prices without needing to time the exact trough. The quality filter separating this screen from a pure 50 DMA pullback scan is essential: pullbacks to the 50 DMA in low-quality businesses can be the beginning of a prolonged downtrend, while pullbacks in high-quality businesses (ROE >10%, ROCE >10%) are more likely to be temporary consolidations before the uptrend resumes. The 3% tolerance band (0.97 to 1.03 price-to-50DMA ratio) is deliberately tight — it captures genuine pullback zones rather than stocks that are simply below their 50 DMA. This is a shorter-horizon entry signal compared to the 200 DMA screens in our screener library.
A stock must satisfy every condition below. Conditions are grouped under the pillar they test.
Technical Entry Zone
Fundamental Quality Gate
Hard excludes
Ranked by ROCE, highest first.
Price / 50 DMA Ratio
Ratio of the current closing price to the 50-day simple moving average of closing prices, computed as current_price / mean(close_price, last_50_trading_days).
High is better
ROE (%)
Return on Equity, computed as net profit attributable to shareholders / average shareholders equity * 100, using the most recently reported annual financial statements from FinEdge.
The qualifier threshold is >10%. ROE above 10% confirms the business is generating acceptable returns on equity capital and is not in fundamental distress. Combined with ROCE >10%, the two-axis quality check filters out businesses with financial leverage masking poor underlying returns (ROCE catches this case since it is leverage-neutral).
High is better
ROCE (%)
Return on Capital Employed, computed as EBIT / (total assets - current liabilities) * 100, using the most recently reported annual financial statements from FinEdge.
The qualifier threshold is >10%. ROCE is the leverage-neutral counterpart to ROE — a company with high ROE driven by high debt will fail the ROCE filter. Requiring both ROE >10% and ROCE >10% ensures the business generates genuine operating returns and is not artificially boosted by financial leverage. This combination is the minimum quality bar for this pullback screen.
High is better
Type hypothetical values to see which conditions they satisfy. These are not real stocks and nothing here is stored.
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How many stocks pass if this threshold were set differently. Counts only; no stocks are named.
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We could not measure this screen well enough to say anything yet.
This screen depends on company financials, and we can only test price-based ideas so far, so it could not be measured.
Not yet testable — 5 of 6 points needed to chart a rolling information coefficient.
This is a historical, statistical measurement produced by FINOME TECHNOLOGIES PVT LTD's research harness on past data. It is not a prediction, and past results do not indicate future results. The universe is today's Nifty 500 constituents, so the sample is affected by survivorship bias. It describes how a screen's selections behaved in the past and does not constitute investment advice or a recommendation.
Rule version 1.0.0