Growth, Owners and Momentum: How Our Quant Screen Picks Stocks

The pattern: three things at once

Most investors pick stocks from a story. A quant approach sets the rules first and lets the data decide. We look for companies whose quarterly sales grew more than 15% over the previous quarter and are higher than a year ago; where Indian promoters raised their stake; and where price trades within 15% of the 52-week high with rising buying volume (OBV).

Why fixed exits matter

Momentum strategies can suffer sharp losses when markets rebound suddenly. Each holding uses the same rules: exit at −15% from entry; at +15% book part of the gain and move the stop on the rest to cost; exit fully at +50%. Stop-losses limit planned losses but cannot guarantee them if a stock gaps down after results.

What could go wrong

• Concentration in 8–12 names magnifies single-stock risk.
• More trades mean more brokerage and short-term capital gains tax.
• Past patterns may not repeat; you must act promptly on exit alerts.

This basket is for investors who accept very high risk, can follow updates quickly, and invest at least ₹5 lakh. See the Alpha Quant Basket.

This article is for education only, not a recommendation to buy or sell any security.