A value momentum screener NSE combines the best of both worlds: fundamental filters (like low PE and high ROE) ensure you're buying quality, while technical momentum filters (like RSI and ADX) confirm the stock is in an uptrend. This approach helps you avoid value traps and overbought momentum names. Start with our guide to screening NSE stocks for momentum to understand the basics.

15%

Minimum ROE

Max PE (trailing)

RSI (14) upper band

ADX (14) trend strength

Why Combine Value and Momentum?

Pure value investing often leads to catching falling knives, while pure momentum can trap you in overvalued bubbles. By combining both, you filter for stocks that are not only cheap but also showing institutional accumulation and price strength. This dual approach has historically improved risk-adjusted returns. For a deeper dive into momentum, check our trend following guide for NSE stocks.

On the NSE, stocks like Tata Motors and Coal India have shown periods where low valuations aligned with strong price trends, leading to multi-year rallies. The value filter ensures you're not overpaying, while the momentum filter confirms that the market is re-rating the stock. This synergy reduces drawdowns and increases the probability of holding winners.

📌 Key Insight
The sweet spot is a PE below 25, ROE above 15%, RSI between 55 and 70, and ADX above 25 — this combination filters out both overbought and weak-trend stocks.

How to Build Your Value Momentum Screener on QUANTSCASE

Start with Fundamentals — Use the Fund Value Picks screener to filter stocks with PE below 25, ROE above 15%, and debt-to-equity below 1. This gives you a quality universe.

Add Momentum Confirmation — Apply the Momentum screener to the resulting list. Look for stocks with RSI (14) between 55 and 70 and price above the 50-day and 200-day moving averages.

Check Trend Strength — Use the ADX Power Trend screener to ensure ADX (14) is above 25, confirming a strong trend. Avoid stocks with ADX below 20 (no trend).

Combine Filters with Techno-Fundamental Screener — For a one-step solution, use the TF-CANSLIM screener which combines fundamental and technical criteria. Adjust the sliders to match your thresholds.

Validate with Volume — Finally, check volume accumulation using the OBV Divergence Buy screener to confirm institutional buying. A rising OBV with price is a strong confirmation.

💡 Pro Tip
Set a trailing stop at 10% below the 50-day moving average to lock in gains while letting winners run.

Key Indicators and Thresholds for Value Momentum

Indicator	Threshold	Signal	Why It Matters
PE (trailing)	< 25	✅ Bullish	Indicates the stock is undervalued relative to earnings.
ROE	> 15%	✅ Bullish	High return on equity signals efficient management and quality.
RSI (14)	55-70	⚡ Watch	Shows strong momentum without being overbought.
ADX (14)	> 25	✅ Bullish	Confirms a strong trend; below 20 means no trend.
Price vs 50-day MA	Above	✅ Bullish	Confirms short-term uptrend.
Price vs 200-day MA	Above	✅ Bullish	Confirms long-term uptrend.

✅ Value Momentum Entry Checklist

✓PE < 25 and ROE > 15%

✓RSI (14) between 55 and 70

✓ADX (14) > 25

✓Price above 50-day and 200-day moving averages

✗Avoid stocks with RSI > 80 (overbought) or ADX < 20 (no trend)

⚠️ Common Mistake
A common mistake is ignoring the quality filter and buying any stock with high momentum. Always ensure the PE and ROE meet your thresholds to avoid speculative losses.

Try It on QUANTSCASE

Use these pre-built screeners to quickly find value momentum opportunities. Start with the Fund Value Picks screener to build your quality universe, then apply momentum filters.

Fund Value Picks →

Filters stocks with low PE, high ROE, and low debt.

Momentum →

Identifies stocks with strong price momentum and RSI in the sweet spot.

ADX Power Trend →

Confirms strong trends with ADX above 25.

TF-CANSLIM →

Combines fundamental and technical criteria in one screener.

Start screening value momentum stocks on NSE

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This guide is for educational purposes only and does not constitute investment advice.