How to Use Short Term Investments

How to Use Short Term Investments

This page explains how to read and interpret the Short Term Investments results. This scanner is designed to identify stocks suitable for short holding periods of approximately 5 to 30 trading days, using a structured combination of trend, momentum, volume, delivery, institutional participation, and risk filters.

The results shown here are for Index: NIFTY PSU BANK. Each row represents one stock for one trading day, evaluated against multiple qualification and rejection criteria.


Understanding Each Column

Symbol

The stock symbol as listed on the exchange. Each symbol uniquely identifies a company within the selected index.

Date

The trading date on which the short-term investment evaluation was performed. All values in the row correspond to this trading session.

Close

The closing price of the stock for the given trading day.

  • Represents the reference price for all calculations
  • Used to assess trend alignment and recent price behaviour

Score (100)

A composite score representing overall alignment with short-term investment criteria.

  • Higher scores indicate stronger overall qualification
  • Reflects combined strength across trend, momentum, volume, and participation
  • Used for relative comparison between stocks

Qualified

Indicates whether the stock has passed all mandatory qualification conditions.

  • Marked as true only if all required filters are satisfied
  • Represents final eligibility for short-term investment consideration

Trend OK

Indicates whether the stock satisfies the base trend condition.

  • Typically requires price to be above key moving averages
  • Ensures the stock is aligned with the prevailing short-term trend

Momentum OK

Indicates whether the stock meets momentum qualification criteria.

  • Confirms that price movement has positive directional strength
  • Helps avoid stocks lacking sufficient price acceleration

Volume OK

Indicates whether current trading volume confirms participation.

  • Requires volume to be meaningfully higher than recent averages
  • Confirms that price movement is supported by active trading interest

Delivery OK

Indicates whether delivery-based participation conditions are satisfied.

  • Confirms that buying interest is not purely speculative
  • Higher delivery participation suggests positional intent

Institutional OK

Indicates signs of institutional or smart-money participation.

  • Derived from accumulation-based metrics
  • Helps identify stocks with professional or sustained interest

Volatility Reject

Flags stocks rejected due to excessive volatility.

  • High volatility increases short-term risk
  • Such stocks are excluded even if other conditions are met

Price Action Reject

Flags stocks rejected due to unfavourable price action behaviour.

  • Includes failed breakouts or structurally weak candles
  • Prevents entry into low-quality or trap-like setups

How to Read This Data Holistically

This scanner should be interpreted by focusing on overall alignment, rather than any single column in isolation.

  • A stock must pass all core qualification checks to be considered
  • Rejection flags override otherwise positive signals
  • Higher scores with no rejection flags indicate cleaner setups

What This Scanner Indicates

  • Stocks suitable for short-term holding periods (5–30 trading days)
  • Early momentum supported by volume, delivery, and participation
  • Controlled risk environments suitable for positional trades

What This Scanner Does Not Indicate

  • It does not guarantee returns or price continuation
  • It does not provide exact entry or exit prices
  • It does not replace individual risk management or judgment

Important Notes

  • This scanner is based on end-of-day data
  • Signals are best used in conjunction with price charts
  • Position sizing and stop-loss planning remain essential

Disclaimer: This information is provided for educational and analytical purposes only and should not be considered trading or investment advice.


Data Update Frequency

Short Term Investments data is updated after market hours for each trading day.


Summary

The Short Term Investments scanner helps identify stocks that meet a strict set of trend, momentum, participation, and risk conditions, making them potentially suitable for short holding periods. It is best used as a structured filtering tool to support disciplined, rule-based short-term investment decisions.