CANSLIM Screener NSE How to Build | QUANTSCASE — NSE Stock Screener

The CANSLIM strategy, popularized by Investor's Business Daily, combines technical and fundamental criteria to identify growth stocks before they break out. This guide shows you how to build a CANSLIM screener for NSE stocks using QUANTSCASE, with specific indicator values and thresholds tailored for Indian markets.

CANSLIM Components

20%

Avg. EPS Growth Target

1.5x

Relative Strength Threshold

50%

Volume Surge Trigger

Why CANSLIM Works for Indian Traders

CANSLIM combines seven distinct factors—Current earnings, Annual earnings, New products/services, Supply/demand, Leader/laggard, Institutional sponsorship, and Market direction—to identify stocks with strong growth potential. This multi-factor approach reduces false breakouts by requiring confirmation from both price and volume. For Indian traders, using a breakout stock screener with CANSLIM filters can significantly improve win rates.

The strategy is particularly effective in trending markets where institutional accumulation drives sustained moves. By screening for high relative strength and accelerating earnings, you align with stocks that have both fundamental momentum and technical confirmation. QUANTSCASE's techno-fundamental screeners automate this process for NSE stocks.

📌 Key Insight
CANSLIM's power lies in its requirement for simultaneous confirmation from multiple dimensions—earnings, price, volume, and market context—reducing reliance on any single indicator.

How to Build Your CANSLIM Screener Step by Step

Step 1: Filter for Strong Current Earnings (C) — Set EPS growth (quarterly) to at least 20% year-over-year. Use QUANTSCASE's fundamental screener to find stocks with recent quarterly earnings acceleration.

Step 2: Check Annual Earnings Growth (A) — Require 3-year EPS growth rate above 15%. Consistent annual growth confirms the company's long-term trajectory.

Step 3: Identify New Products or Services (N) — Look for stocks with recent news of new launches, contracts, or industry tailwinds. This is qualitative—use the news filter or sector momentum as a proxy.

Step 4: Analyze Supply and Demand (S) — Screen for low float stocks (shares outstanding < 100 crore) with increasing volume. Use the volume accumulation screener to detect institutional buying.

Step 5: Confirm Leader vs. Laggard (L) — Select stocks with Relative Strength (RS) rating above 80 (top 20% of NSE). Use the momentum screener to find leaders in their sectors.

Step 6: Check Institutional Sponsorship (I) — Look for rising institutional ownership (FII/DII holdings increasing). Use the fundamental screener to filter for stocks with recent FII buying.

Step 7: Assess Market Direction (M) — Only trade CANSLIM setups when Nifty 50 is above its 50-day moving average. Use the market breadth tool to confirm bullish market conditions.

💡 Pro Tip
Combine the C, A, and L filters first to narrow the universe to under 50 stocks, then apply volume and institutional filters to find the strongest candidates.

Key CANSLIM Indicators and Thresholds

Indicator	Threshold	Signal	Why It Matters
Quarterly EPS Growth	≥ 20% YoY	✅ Bullish	Shows accelerating earnings momentum.
Annual EPS Growth	≥ 15% (3-year)	✅ Bullish	Confirms sustainable growth trend.
Relative Strength (RS)	≥ 80 (top 20%)	✅ Bullish	Stock outperforms market peers.
Volume Surge	≥ 1.5x 50-day avg	✅ Bullish	Institutional accumulation signal.
FII Holding Change	≥ 2% increase QoQ	✅ Bullish	Foreign investors adding positions.
Nifty 50 vs 50-DMA	Price > 50-DMA	⚡ Watch	Market in uptrend—favorable for breakouts.
Shares Outstanding	< 100 crore	⚡ Watch	Low float stocks can move faster.
Debt-to-Equity	> 1.0	❌ Bearish	High debt increases risk—avoid.

✅ CANSLIM Entry Checklist

✓Quarterly EPS growth ≥ 20% YoY

✓Annual EPS growth ≥ 15% (3-year)

✓RS rating ≥ 80 (top 20% of NSE)

✓Volume > 1.5x 50-day average on breakout day

✗Debt-to-Equity > 1.0 (avoid high debt)

⚠️ Common Mistake
A common mistake is ignoring the 'M' (Market direction) component. Even the best CANSLIM stocks fail in bear markets—always check Nifty 50's trend before entering.

Try It on QUANTSCASE

Use QUANTSCASE's pre-built screeners to automate your CANSLIM search. Start with the techno-fundamental CANSLIM screener to combine earnings, momentum, and volume filters in one click.

Techno-Fundamental CANSLIM →

Combines earnings growth, RS, and volume filters for NSE stocks.

Strong Trend Screener →

Finds stocks with RS > 80 and price above 50-DMA.

Volume Accumulation Screener →

Detects institutional buying with OBV and volume surges.

Start screening like a pro

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This guide is for educational purposes only and does not constitute investment advice. Past performance does not guarantee future results.