How to Use Defensive Investments
This page explains how to read and interpret the Defensive Investments results. This scanner is designed to identify stocks suitable for defensive, capital-preservation–oriented investment, particularly during periods of market uncertainty or elevated volatility. The focus is on stability, controlled risk, and consistency rather than high returns.
The results shown here are for Index: NIFTY 50. Each row represents one stock for one trading day, evaluated from an investor’s perspective with emphasis on low volatility, stable price behaviour, and defensive characteristics.
Understanding Each Column
Symbol
The stock symbol as listed on the exchange. Each symbol uniquely identifies a company within the index.
Date
The trading date on which the defensive 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.
- Serves as the reference price for stability and risk assessment
- Used to evaluate recent price behaviour
Qualified
Indicates whether the stock has passed all defensive investment criteria.
- Marked as qualified only if all stability and risk filters are satisfied
- Represents eligibility for defensive allocation
Risk Profile
An assessment of the stock’s overall risk level in a defensive context.
- Typically classified as Low or Moderate
- Helps align selections with conservative portfolio objectives
Sector OK
Indicates whether the stock belongs to a traditionally defensive sector.
- Common examples include FMCG, Pharma, and other non-cyclical sectors
- Helps reduce sensitivity to economic cycles
Price Stable
Indicates whether the stock has shown stable price behaviour over time.
- Avoids sharp swings or erratic movements
- Supports smoother portfolio performance during volatile markets
Low Volatility
Indicates whether the stock exhibits relatively low price volatility.
- Lower volatility reduces drawdowns during market stress
- Supports long holding periods with reduced risk
Volume Stable
Indicates whether trading volume remains consistent over time.
- Helps avoid stocks affected by sudden speculative interest
- Suggests steady participation rather than episodic trading
RSI Not Overbought
Indicates whether the stock is not in an overbought condition.
- Helps avoid entering positions after sharp run-ups
- Supports disciplined, lower-risk entry timing
Recent Return Not Extreme
Indicates whether recent price returns are within a normal range.
- Avoids stocks that have moved too far too fast
- Reduces the risk of mean reversion
How to Read This Data Holistically
This scanner should be interpreted with a capital-preservation mindset, focusing on consistency and downside protection rather than aggressive growth.
- Qualified stocks with low or moderate risk profiles indicate defensive suitability
- Stability across price, volume, and volatility is more important than momentum
- Best used during uncertain or weak market phases
What This Scanner Indicates
- Stocks suitable for defensive allocation
- Lower volatility and stable price behaviour
- Potential portfolio stabilisers during market drawdowns
What This Scanner Does Not Indicate
- It does not aim to identify high-growth opportunities
- It does not guarantee protection from all market declines
- It does not replace diversification or portfolio rebalancing
Important Notes
- Defensive investments are best suited for cautious market environments
- Periodic review is still required even for stable holdings
- Sector concentration should be managed at the portfolio level
Disclaimer: This information is provided for educational and analytical purposes only and should not be considered trading or investment advice.
Data Update Frequency
Defensive Investments data is updated after market hours for each trading day.
Summary
The Defensive Investments scanner helps identify stocks that prioritise stability, low volatility, and consistent behaviour over aggressive returns. It is best used as part of a risk-managed, capital-preservation strategy, particularly during periods of market uncertainty.