The value momentum screener NSE is a powerful hybrid approach that combines fundamental undervaluation with technical strength. By screening for stocks that are both cheap on earnings and showing strong upward price movement, you can find high-conviction opportunities. Start with the value picks screener to build your base list.

15%

Average 6-month return of value momentum stocks

0.5

Maximum PB ratio for value screening

Minimum ADX value for strong trend

RSI threshold for overbought caution

Why Combine Value and Momentum?

A value-only approach can leave you holding stagnant stocks for months, while a momentum-only approach often leads to buying overvalued names at the top. The value momentum screener NSE solves this by filtering for stocks that are both fundamentally cheap and technically strong. This combination has been shown to outperform pure value or pure momentum strategies in backtests. For a deeper dive into momentum, check our momentum screening guide.

When a stock is undervalued but already trending, it often indicates that institutional money is flowing in before the broader market catches on. This gives you an early entry with a margin of safety. The key is to use strict thresholds to avoid value traps and false breakouts.

📌 Key Insight
The sweet spot is a stock with PE below 20, PB below 3, RSI between 55 and 65, and ADX above 25 — this combination often precedes a sustained rally.

How to Use the Value Momentum Screener

Start with a Value Screen — Use the Fundamental Value Picks screener to filter stocks with PE < 20, PB < 3, and positive earnings growth.

Add Momentum Filters — Apply momentum indicators: RSI (14) between 55 and 65, and 50-day EMA above 200-day EMA.

Confirm Trend Strength — Check ADX (14) above 25 to ensure the trend is strong, not just a brief bounce.

Check Volume Confirmation — Use the OBV divergence screener to confirm that volume is supporting the price move.

Set Entry and Exit Rules — Enter on a pullback to the 20-day EMA, and exit if price closes below the 50-day EMA or if RSI drops below 50.

💡 Pro Tip
Always check the quarterly earnings trend — a value momentum stock with accelerating earnings growth is a much stronger candidate than one with declining fundamentals.

Key Indicators for Value Momentum Screening

Indicator	Threshold	Signal	Why It Matters
PE Ratio	< 20	✅ Bullish	Indicates the stock is undervalued relative to earnings.
PB Ratio	< 3	✅ Bullish	Shows the stock is trading below its book value multiple.
RSI (14)	55-65	⚡ Watch	Momentum is strong but not overbought; above 70 is risky.
ADX (14)	> 25	✅ Bullish	Confirms a strong trend; below 20 suggests a range-bound market.

✅ Value Momentum Entry Checklist

✓PE ratio is below 20 and PB ratio is below 3.

✓RSI (14) is between 55 and 65, showing strong but not overbought momentum.

✓ADX (14) is above 25, confirming a strong trend.

✓50-day EMA is above 200-day EMA, indicating an uptrend.

✗Avoid stocks with RSI above 75 or ADX below 20, as they may be overextended or trendless.

⚠️ Common Mistake
A common mistake is to ignore the quality of earnings. A low PE can be a value trap if earnings are declining — always check the latest quarterly results and cash flow.

Try It on QUANTSCASE

Use these pre-built screeners to start your value momentum search. Combine the value picks with the strong trend screener for a quick scan.

Value Picks →

Filters stocks with low PE, PB, and positive earnings growth.

Strong Trend →

Identifies stocks with high ADX and moving average alignment.

RSI Momentum →

Finds stocks with RSI in the sweet spot of 55-65.

Combine value and momentum with the CANSLIM approach

Start Your Value Momentum Scan Now

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.