Objective: Know how to put together a hand-picked list of stocks to keep an eye on, to analyze and act on when the conditions suit your strategy.
Why a Watchlist Matters
A watchlist helps you:
1. Try not to make impulsive decisions (e.g. Zomato buying because it is a trend).
2. Follow the opportunity systematically (example Reliance Industries getting close to support).
3. Keep up with sectors/companies you own.
Example:
– 2020 Crash: Those who were pre-set watchlist made the most of the underpriced stocks like Asian Paint and HDFC Bank.
Step 1: Define Your Criteria
Create your watchlist based on your strategy:
For Value Investors (Fundamental Focus):
– Metrics: P/E < Industry Avg, ROE > 15%, Debt/Equity < 1.
– Indian Examples:
– ITC (P/E 25 vs FMCG Avg 35, ROE 24%).
– Tata Motors (EV growth potential, cyclical industry recovery).
For Growth Investors:
– Metrics: Revenue growth > 20%, High ROCE, Expanding margins.
– Indian Examples:
– Tata Power (renewable energy expansion).
– Affle India (digital advertising growth).
For Technical Traders:
– Setups: Breakout stocks, RSI oversold, Bollinger Band compressions.
– Indian Examples:
– HDFC Bank around 200-day MA support.
– Infosys consolidating near ₹1,500 resistance.
Step 2: Tools to Build Your Watchlist
1. Stock Screeners
– Free Tools:
– Screener.in (fundamental filters).
– TradingView (technical setups).
– Paid Tools:
– Trendlyne (institutional-grade analysis).
2. News Trackers
– Sources:
– Economic Times (sector trends).
– Moneycontrol (company-specific news).
3. Alert Systems
– Fatca Price Alerts: Set alerts in Zerodha Kite or Google Finance.
– Event Alerts: Earnings Dates, Dividends Announcements (use Dividend Yield ).
Step 3: Organize Your Watchlist
