A value momentum screener NSE investors use combines two factors that rarely appear together: cheap valuation and strong price trend. Instead of choosing between deep-value stocks that stay flat and high-momentum names that are already expensive, a dual-factor screen surfaces NSE stocks where fundamentals are improving and the market has started to notice. Start with the fundamental value picks screener to build your valuation base before layering momentum filters.

Max P/E for Value Leg

15%

Min ROE Threshold

20%

6-Month Relative Strength

1.5x

Volume vs 20-Day Average

Why Combine Value and Momentum on NSE?

Value alone can leave you in stocks that are cheap for a reason, while momentum alone often means buying extended names near exhaustion. Academic and practitioner research across Indian equities shows that combining the two factors smooths drawdowns and improves risk-adjusted returns versus either factor in isolation. The value leg anchors your entry price, and the momentum leg confirms that institutional money is already accumulating the stock. You can see this institutional footprint through volume accumulation patterns before the breakout becomes obvious.

On NSE, sector rotation amplifies this effect. When a beaten-down sector like PSU banks or metals starts outperforming, the cheapest names inside it often lead the move. A value momentum screen catches these transitions early because it requires both a low valuation and a rising relative strength line. This is why dual-factor screens tend to outperform single-factor value screens during trending markets while still protecting capital in corrections.

📌 Key Insight
The edge is not in finding cheap stocks or strong stocks separately — it is in the overlap where valuation provides the margin of safety and momentum provides the timing. That overlap is usually small, often 5-15 NSE stocks at any given time.

How to Build the Value Momentum Screen Step by Step

Set the valuation floor — Filter for P/E below 15, price-to-book below 2.5, and positive trailing twelve-month earnings. Exclude stocks with debt-to-equity above 1.5 to avoid leveraged value traps.

Add quality filters — Require return on equity above 15% and three-year revenue growth above 10%. This removes statistically cheap stocks that are cheap because their business is deteriorating.

Layer the momentum leg — Require the stock to trade above its 50-day and 200-day moving averages, with 6-month relative strength versus Nifty 50 above 20%. This confirms the trend has turned in the stock's favour.

Confirm with volume and trend strength — Use the ADX power trend screener to require ADX above 25, and check that 20-day average volume is at least 1.5x the 3-month average. Rising volume validates that the momentum is real, not a low-liquidity drift.

Rank and review weekly — Sort the surviving list by relative strength and review every weekend. Replace names that fall below their 50-day moving average or whose valuation has expanded beyond your threshold.

💡 Pro Tip
Run the screen when Nifty 50 breadth is improving, not when it is deteriorating. A value momentum signal in a weak breadth environment has a much higher failure rate — check the market breadth dashboard before acting on any new names.

Key Indicators and Thresholds for the Screen

Indicator	Threshold	Signal	Why It Matters
P/E Ratio	Below 15	✅ Bullish	Cheap valuation provides margin of safety and upside room.
Return on Equity	Above 15%	✅ Bullish	Confirms the business generates quality returns on capital.
6-Month Relative Strength vs Nifty	Above 20%	✅ Bullish	Shows the stock is outperforming the index, confirming momentum.
ADX (14-period)	Above 25	✅ Bullish	Confirms a strong directional trend rather than a range.
Price vs 200-DMA	Above 200-DMA	⚡ Watch	Long-term trend is intact but needs volume confirmation.
Debt-to-Equity	Above 2.0	❌ Bearish	High leverage can turn cheap valuations into value traps.

✅ Value Momentum Entry Checklist

✓P/E below 15 and price-to-book below 2.5 with positive earnings

✓ROE above 15% and debt-to-equity below 1.5

✓Price above both 50-DMA and 200-DMA with ADX above 25

✓6-month relative strength vs Nifty 50 above 20%

✗Avoid stocks where volume is falling while price rises — that divergence often precedes a failed breakout

⚠️ Common Mistake
The most common mistake is buying a stock that is cheap and rising but has deteriorating fundamentals — falling revenue, rising debt, or negative cash flow. Always verify the quality filters before acting on the momentum signal.

Try It on QUANTSCASE

Use these pre-built screeners to run the value and momentum legs separately, then intersect the results. For a deeper technical read on the momentum leg, pair this with the RSI and MACD screening guide.

Fundamental Value Picks →

Filters NSE stocks by low P/E, low P/B, and quality metrics like ROE.

Strong Trend Momentum →

Surfaces stocks in confirmed uptrends with rising relative strength.

Techno-Fundamental CANSLIM →

Combines earnings growth and price strength in one screen.

OBV Divergence Buy →

Flags accumulation before price breakout, confirming institutional interest.

Combine valuation and momentum filters across the NSE universe

Run the Value Momentum Screen on QUANTSCASE

Screen 1,800+ NSE Stocks

This guide is for educational purposes only and does not constitute investment advice; always do your own research before trading.