What to Avoid While Using NSE Screener Filters
Introduction
Using the NSE Screener to find stocks is a smart move—but only if your filters are accurate and intentional. Many traders and investors make common mistakes while applying filters, leading to poor stock selection and missed opportunities. In this article, we highlight the top NSE Screener filter mistakes to avoid, so you can screen smarter and trade with more confidence.
1. Using Too Many Filters at Once
Why It’s a Problem:
Over-filtering narrows the results too much, potentially excluding good stocks.
Example Mistake:
- PE < 10
- ROE > 25%
- EPS > 50
- Debt = 0
- Price < ₹200
→ This may return no stocks or overly specific results.
What to Do Instead:
Start with 2–3 core filters, then refine results gradually.
2. Ignoring Sector Context
Why It’s a Problem:
Different sectors have different valuation norms. Applying a “one-size-fits-all” filter can lead to irrelevant results.
Example Mistake:
- PE < 15 (good for metals but not for IT or FMCG)
What to Do Instead:
Compare within the same sector. Use industry benchmarks.
3. Filtering Based Only on PE Ratio
Why It’s a Problem:
A low PE ratio doesn’t always mean a good investment. The stock may be low-valued for valid reasons like declining business or high debt.
What to Do Instead:
Pair PE with ROE, Debt/Equity, and growth metrics for a fuller picture.
4. Forgetting to Check Liquidity
Why It’s a Problem:
Stocks with low volume may show up in your results but can be hard to buy or sell without slippage.
What to Do Instead:
Add a minimum volume filter:
mathematicaCopyEditVolume > 100000
This ensures better liquidity.
5. Not Validating with Charts
Why It’s a Problem:
Screener filters don’t tell you the chart setup. A fundamentally good stock may still be in a downtrend.
What to Do Instead:
After filtering, always check the stock chart using TradingView or your broker’s platform.
6. Skipping F&O Eligibility for Derivative Traders
Why It’s a Problem:
Options traders may screen stocks that aren’t F&O eligible, making them unusable for certain strategies.
What to Do Instead:
Cross-check filtered stocks with NSE’s F&O list.
7. Using Static Data for Intraday Trades
Why It’s a Problem:
The NSE Screener updates end-of-day (EOD), not real-time. Using it for intraday decisions may lead to outdated signals.
What to Do Instead:
Use real-time screeners like Chartink (live) or your broker terminal for intraday ideas.
8. Blindly Copying Popular Formulas
Why It’s a Problem:
Formulas that work for one trader may not suit your strategy, capital, or risk tolerance.
What to Do Instead:
Customize filters based on your time frame, trade type, and capital.
9. Not Reviewing Financial Updates
Why It’s a Problem:
Quarterly results can quickly change a stock’s PE, EPS, or ROE. Relying on outdated screeners can mislead you.
What to Do Instead:
Update your screens after each earnings season and re-evaluate companies quarterly.
Quick Checklist: NSE Screener Mistakes to Avoid
✅ Avoid over-filtering
✅ Don’t apply generic filters across sectors
✅ Combine valuation and quality metrics
✅ Check volume and liquidity
✅ Review chart patterns
✅ Validate with F&O list if needed
✅ Use real-time screeners for intraday
✅ Customize your formulas
✅ Refresh screeners quarterly
FAQs
Should I always use ROE and EPS together?
Yes, using them together gives a clearer picture of profitability and capital efficiency.
How often should I review my screener criteria?
At least once every quarter or after any major market or earnings event.
Is it okay to use screener.in formulas blindly?
No. Understand the logic behind each filter before using it. Every trader’s needs are different.
Conclusion
The NSE Screener is a valuable tool—but only when used with clear logic and context. By avoiding the mistakes above, you’ll build better screeners, reduce false signals, and improve your stock-picking process. Combine smart filters with chart analysis and ongoing review to take your trading or investing to the next level.
Explore more strategy guides and filter setups here on NSEScreener.com.
