Technical & Price Action
Quality Dip Below 200 DMA is a Technical & Price Action screen. It checks every NSE-listed stock against 2 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 200-day moving average is the market's long-run consensus price for a stock. When a fundamentally strong business — one with high capital returns and meaningful scale — trades below that level, the market is pricing in either temporary bad news, a sector-wide sentiment shift, or simple momentum-driven selling that has nothing to do with business fundamentals. Most retail and institutional flows chase the price_vs_200dma_breakout signal (buying what has already crossed above the 200 DMA), which means the dip below it is structurally overlooked. This screener flips the logic: it treats price weakness in a high-ROCE, mid-to-large-cap business as a potential entry window rather than a warning. The key discipline is the fundamental quality gate — without it, this screener degenerates into catching falling knives.
A stock must satisfy every condition below. Conditions are grouped under the pillar they test.
Fundamental Quality
Price Dip
Hard excludes
Ranked by ROCE, highest first.
Return on Capital Employed (%)
EBIT divided by capital employed (total assets minus current liabilities), expressed as a percentage, using the most recent annual figures.
The primary quality gate. ROCE above 20% means the business earns meaningfully more than its cost of capital — a genuine competitive advantage. Below 20%, the dip may be the market correctly pricing a mediocre business. This threshold is intentionally strict to ensure only durable-quality businesses pass.
High is better
Price-to-200 DMA Ratio
Current market price divided by the 200-day simple moving average of the closing price. A value below 1.0 means the stock is trading under its 200 DMA.
Low is better
Market Capitalisation (₹ Cr)
Current market price multiplied by total shares outstanding, expressed in Indian crore rupees.
A size filter, not a quality signal. Stocks below 500 Cr market cap are excluded because micro-caps can spend extended periods below their 200 DMA without any fundamental recovery — liquidity, governance, and institutional neglect are confounding factors. Above 500 Cr, the 200 DMA is a more meaningful reference point.
High is better
Type hypothetical values to see which conditions they satisfy. These are not real stocks and nothing here is stored.
Enter values to begin
How many stocks pass if this threshold were set differently. Counts only; no stocks are named.
Loading the worked example…
Sign in with a completed risk profile to check any stock against this rule.
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