What does the Technical Rating mean?
The Technical Rating that appears for each stock is calculated by comparing the
most of the technical parameters and its price change over the past 12 months to
that of all other stocks in the tables. Results are rated on a scale from 1 to 99,
with 99 being best.
A Technical Rating of 99 is the highest possible and means the stock has outperformed
99 percent of all stocks. A Technical Rating of 1 means nearly all other stocks
have done better. Market leaders usually rate 70 or higher.
How is the Fundamental Rating calculated?
‘99’ rating is the highest mark and represent the top performer of all stocks. Fundamental
factors such as sales growth rate over the last three years, pre-tax profit margins;
after-tax profit margins; return on equity (ROE).
What does the Final Rating represent?
The Final Rating combines both Technical & Fundamental Ratings into one easy-to-use
rating. Each of these ratings consists of several parameters with different weightages
assigned to each parameter. The results are then compared to the results of all
other companies on every parameter. Each company is then assigned a rating from
1-99 with 99 being the best.
This rating is designed to help you get a quick feel for how is a company compare
to all other stocks in our database.
How can a stock's Technical Rating go down when the stock itself is going up?
The fact that your stock has gone up while its Technical Rating has fallen does
not automatically mean you need to sell it. What it means is that other stocks are
performing better relative to this particular stock. As a general rule, you may
start thinking about selling a stock if its Technical Rating falls below 50. However,
it would be more of a concern if the stock were falling or going nowhere.
How can a stock be in consolidation and still have a Technical rating of 80+?
A stock's Technical Rating may dip as the stock works its way through a base, or
price consolidation. This is normal because the price declines required to form
a base will weigh on the Technical Rating. But as the stock climbs back toward its
old high, the rating should rebound as well. So, while a stock may have a lower
Technical Rating as it builds its base, the important thing is for it to have a
rating of 80 or higher (meaning it is among the top 20 percent of all stocks in
terms of price performance) as it finishes its base. If most stocks drop 20 percent
and yours falls 10 percent, it's still stronger than most other stocks even though
it fell in price. Historically, the best stocks have had Technical Ratings of 80
or higher at their breakouts.
If the ratings for a stock fall, should it be sold?
All of the Ratings are updated daily. Technical Ratings change more often than fundamental
rating because they reflect the market's daily activity. The Fundamental ratings
reflect companies' fundamentals and change less frequently because companies report
results on a quarterly basis. You shouldn't automatically sell a stock just because
a Technical rating drops. But any time you see such a drop, it serves as a signal
to watch the stock for signs of weakness.
Does a high Technical Rating mean the stock has already made its big price move?
You want to buy the best merchandise available. A Technical Rating of 90 or higher
will generally show that it is a leader and has been outperforming nearly all the
other stocks in the market. Ex. TTK Prestige Ltd, Titan has technical rating of
98 throughout most of 2010-11, yet continued to make new highs.
Should I be concerned if the Technical Rating reaches a new high but the stock's
No, you should not be concerned if a stock's Technical Rating hits a new high when
the actual stock price is not at a new high. In fact, it is generally a positive
sign when a stock's relative strength goes into new high ground prior to the stock
breaking out of its base. A high relative strength indicates the stock is performing
relatively well in the current market environment, which is an indication of demand.
Is it too late to buy a stock that has a Rating of 99?
Not necessarily. A 99 indicates tremendous leadership. Our studies show that the
strongest companies continue their advances because they have superior earnings,
strong management and are in leading industries.
Can the Final Rating be used to screen potential stocks?
Yes, the Final Rating can be used as a filter to identify stocks for potential purchase.
In fact, this rating was designed as a quick and easy way for StockAxis.com subscribers
to compose a list of potential buy candidates. Focusing on those stocks with a Final
Rating of 70 or higher will yield a large number of stocks for further research.
But remember, checking a stock's Ratings is just the first step of your research.
It's also important to really understand a company's fundamentals, including its
sales and earnings, return on equity, profit margins, products, etc. Much of this
information can be researched at a company's Web site.
We offer 7-day trial subscriptions of our services, which includes SMS Advisory,
Stock Trend, Stock Rating, Portfolio Tracker, and Commodity Trend.
Do I sell my stock when other stocks in its industry are trending down?
New highs in lower volume, especially when other stocks in a group have rolled over,
always raise a red flag. You might consider taking partial profits and see how the
remaining shares hold up.
Should I buy stocks that are on an uptrend, and clearly have more potential?
You can try to buy a leading stock after it Long Term Trend turns from Down to UP
with final rating above 70.
Can I buy a stock based solely on the Trend and Rating?
It is essential that you wait for a correct buy point, regardless of the Rating.
The Trend is designed to help you quickly find the strengths and weaknesses in a
stock. The Overall Rating gives you a comprehensive look at where the stock ranks
vs. all other stocks in our entire database. Even if a stock has a top score for
all its ratings, you still need to analyze the Trend. The key is to buy the stock
as its Trend turns from Down to Up. And cut your loss at 8%. Using the Trend and
rating will help you select and analyze stocks in a shorter time, but you still
need to do your homework. Don't forget that it is necessary to the have the general
market behind you. Even the highest-rated stocks will give you trouble if the general
market is working against you. The best thing to do during a bear market is to create
a watch list of good stocks for the time when the market does turn, and it always
does. When the next bull market comes you want to be ready! If you are scrambling
to get a watch list together once the bull market starts, you might miss the next
big winner. Use the StockAxis Top 50 to help you create and monitor this watch list;
it will save you a lot of time.
How do I create my own list under "My Favourites", and how do I make changes to
StockAxis TOP 50
To access the "My Favourites" feature, sign on to StockAxis.com and click on the
link, "My Favourites," which appears on the submenu of ‘My Page’ or at the right
hand side of our home page.
You simply search the stock Trend you want from Trend/Rating Finder and click the
button on Add to Favourites. If you already have a list and need to remove the stocks,
you must click on the x icon.
Where is the StockAxis Top 50?
The StockAxis Top 50 is located in the StockAxis.com My Page. To access it, sign
in from the homepage and select StockAxis Top 50 submenu from the links that appear
While non paid subscribers may view the five stocks in the home page, only paid
subscribers can view the entire list. Subscribers can add the stocks in their watch
list by clicking on ‘Add to Favourites’ icon.
How is the StockAxis Top 50 stocks selected?
The StockAxis Top 50 is a computer-generated ranking of leading companies trading
in the Indian Markets. Rankings
are based on a combination of both Fundamental and Technical rating. Fundamental
Ratings includes many key measures such as return on equity, sales growth, profit
margins etc. and Technical Rating includes many technical parameters such as price-volume
action, moving averages, relative strength etc.