How Ebitta's screens work
Updated
Ebitta screens Indian equities once a day, after the NSE and BSE close, using official exchange files. Every rule below is applied the same way to every stock; nothing is hand-picked.
Which stocks are screened?
Ordinary equity shares listed on NSE (mainboard and SME), plus companies listed only on BSE. A stock needs at least a year of valid daily prices, no recent data gap, and a median traded value of at least ₹10 lakh a day over the last 20 sessions. Prices come from the official NSE and BSE daily bhavcopy files: NSE history from 1 January 2016, BSE-only listings from 8 July 2024.
How are corporate actions handled?
Past prices are adjusted for splits, bonuses and rights issues, so charts and returns compare like with like. Rights issues use the theoretical ex-rights price. Dividends are recorded but not adjusted. A move of 30% or more that no corporate action explains is held for review, and that stock is excluded until it is resolved.
What is relative strength?
A 1 to 99 rank of each stock's performance over the past year against every data-ready equity, weighting the latest three months most (40%, then 20% each for months 4–6, 7–9 and 10–12).
What counts as a breakout?
- Base. A sideways range of 15 sessions to two years, no deeper than 35%. Ebitta prefers contracting bases, whose daily ranges and volume shrink in the second half, and high bases no deeper than 25% at or above earlier highs.
- Fresh breakout. Relative strength of at least 70, a close above both the 50-day and 200-day averages, and a close above the base's breakout level within the last 5 sessions on at least 1.5× the 20-session median volume, while still no more than 5% above the level.
- Near breakout. The same strength and trend conditions, closing within 10% below an established breakout level.
- Continuing and closed. After the fresh window, a breakout is followed while it closes above its original level, and marked closed once it closes at or below it.
What is momentum?
Higher closes and higher highs counted separately over recent sessions: 3 of the last 3, 4 of 5, 5 of 7, or 15 of 21. The latest close and the window's total return must also be positive.
What is confluence?
Four conditions agreeing on one daily close: price closes above its open and previous close, in the upper 40% of its range, above EMA10 and EMA20; the MACD (12, 26, 9) histogram is positive and not shrinking; RSI (14, Wilder) is at least 55 and no lower than three sessions ago; and volume is at least 1.5× the previous 20 sessions' median and above the previous session.
What is Noteworthy?
A daily starting point that lists each qualifying stock once: fresh breakouts on their own, near and continuing setups supported by momentum or confluence, and stocks with momentum and confluence together. The order helps review; more matching labels do not mean a higher chance of profit.
What is market breadth?
The share of eligible stocks above their 50-day and 200-day averages, and the same for each sector, measured on the same members over time.
Limitations
All screens use the daily close only; nothing is intraday. Exchange data can be late or wrong, and adjustments can contain errors. Ebitta is not registered with SEBI as an investment adviser or research analyst. Its screens are educational observations from public NSE and BSE data, not recommendations to buy, sell or hold any security.