SB IQ Policy
For making informed investment / trading decision at the right time in the journey of creating healthy portfolio, lot of information including promoters’ / management’s interest, their experience & expertise, financial strength of the company, etc. need to be studied and analyzed. At times, all the information may not be available at the right time or it might be difficult to understand financial jargons.
SBIQ Policy is developed to summarize strength of stocks based on valid, fact-based and published results, which act as a supporting tool for investors(or users) and help them take informed investment / trading decision.
Rating / Grading Process:
Process of screening & selecting stocks that meet predetermined investment and financial criteria based on SBIQ Policy/ parameters.
Stock book screener has three components:
a) Database of companies,
b) Stock Book Criteria and
c) Screening engine that identifies the companies satisfying such criteria to generate a list of matches.
On database of Companies; fundamental research and technical analysis is performed based on fact-based data such as annual reports, quarterly results, company updates, and credit rating; which are studied and analyzed. Screening Engine queries the stock database to select and classify stocks according to pre-determined Stock book criteria / SBIQ policy.
Star rating (or Star Matrics)
One of the most easy and understandable forms is rating the stocks based on 0 to 5 stars. Through the study & analysis and applying SBIQ Policy, the stocks are rated with 0 to 5 stars Classification of stocks based on their financial & fundamental strength:
|Star Metrics||Financial & Fundamental Strength|
SBIQ robotics –
Market sentiments of most of the stocks are stocks are provided based on SBIQ Policy.
a) SBIQ Policy for Fundamental Strength:
Based on predefined policy, parameters and methodology considering financial & fundamental strength; most of the stocks are graded and
assigned – “STRONG” or “FAIR” or “EXPENSIVE” grade or “NOT ASSIGNED”. Such guidance is given on weekly basis.
“Strong” refers to the stock whose valuation is Attractive as per historical valuation
“Fair” refers to the stock whose valuation is priced in as per historical valuation
“Expensive” refers to the stock whose valuation is above historical valuation
“Not Assigned” – For the stocks which are not covered within the prescribed fundamental parameters Grade will be assigned for only
those stocks that are members of Nifty 500 index and have SBIQ 3 and above star rating based on fundamental strength.
b) SBIQ Policy for Technical Analysis:
Based on predefined policy, parameters and methodology; most of the stocks are given grades based on Technical analysis and guidance as BULLISH / BEARISH / Neutral is assigned. Such guidance is given separately for daily and / or weekly basis considering its technical analysis.
“BULLISH” refers to the stock whose price shows up trend or is deemed to move high based on the technical analysis.
“BEARISH” refers to the stock whose price has downtrend is deemed to move down based on the technical analysis.
“NEUTRAL” refers to the stock whose price is in consolidation is deemed to move in range based on the technical analysis.
Grade will be assigned to 1500 companies listed in NSE and BSE exchange
As Equity Markets, by nature are volatile, the Star ratings (or star metrics)or the Gradation or any recommendation based on fundamental research / technical analysis does not provide any guarantee of assured returns.It neither constitutes an offer to sell nor solicitation for the purchase or sale of any financial instrument. It also does not constitute an official confirmation of any transaction.
Such ratings / gradation / recommendation are prepared for assistance only and not intended to be and must not be taken as the basis for an investment decision by itself. Recipients should also be aware that past performance is not necessarily a guide to future performance and value of investments can go down due to adverse market effects. The user assumes the total risk of any use of the same. Each recipient / user / investor using this rating or grade or recommendation should make such investigations as he/she deems necessary to arrive at an independent evaluation of an investment in the securities of companies (including the merits and risks involved), and should consult his/her own advisors to determine the merits and risks of such an investment/ trading as these may not be suitable for all investors.
Employees / Directors / Partners of STOCKBOOK
- might / might not have cash / future / options positions in the stocks so rated / graded / recommended and / or
- might have the counter position (in cash / futures / options), based on their own risk profiling or their own investment strategies or otherwise, in the stocks so rated / graded / recommended