Opportunity Universe
What stocks deserve attention?
I have roughly 2,000 listed stocks and limited time. Where should I focus? This framework narrows. It does not judge.
Illustrative counts. Actual numbers vary with market conditions.
This framework exists to answer that question.
Its purpose is not to predict winners.
Its purpose is to systematically reduce a large universe of stocks into a manageable set of opportunities worthy of further study.
Judgment comes later.
Cut 1 — Structural Exclusions
Before searching for opportunities, I remove stocks that fall outside my investable universe.
These exclusions exist regardless of how attractive a chart may appear.
Outside preferred trading universe
Lower quality participation and execution
Difficult risk management
Outside preferred universe
A good chart does not compensate for poor tradability.
The goal is not to find every opportunity.
The goal is to find opportunities that can actually be traded.
Cut 2 — Tradability Filters
After structural exclusions, I focus on stocks that are liquid enough to trade and active enough to generate meaningful movement.
This is a quantitative filter.
| Filter | Threshold |
|---|---|
| Price | > ₹50 |
| Average Daily Traded Value | > ₹5 Cr |
| Average Daily Range (ADR) | > 3% |
- Liquidity
- Participation
- Consistent movement
- Efficient execution
- Thinly traded stocks
- Inactive stocks
- Low-volatility names
Volatility creates potential.
Both are required.
Cut 3 — Sector & Theme Leadership
This is where the framework shifts from screening to context.
I rarely begin with a stock.
I begin with leadership.
Before looking for individual names, I want to understand where capital is flowing.
Evidence I Use
No single indicator determines leadership.
Instead, I look for alignment across multiple signals:
- Relative strength of sector indices versus the broader market
- Sector performance heatmaps
- Visual review of sector charts
- New highs and participation within sectors
- Relative strength rankings of leading stocks
Sector leadership is confirmed when multiple pieces of evidence point in the same direction.
Strong sectors often emerge from favorable market conditions.
The objective is not to predict future leadership.
The objective is to identify existing leadership.
Cut 4 — Manual Chart Review
This is the first subjective step.
Everything before this stage can be filtered.
This stage requires judgment.
By this point, the universe has already been reduced significantly. I now manually review approximately 100–150 charts.
What I Review
- Trend structure
- Relative strength
- Volume behavior
- Consolidation quality
- Breakout potential
- Risk-reward characteristics
This stage transforms a filtered universe into a practical watchlist.
Market Environment
- Question
- How aggressive should I be?
- Output
- Aggressive / Neutral / Defensive
- Purpose
- Determine exposure
Opportunity Universe
- Question
- Where should I focus my attention?
- Output
- Working Watchlist
- Purpose
- Determine opportunity
The two frameworks operate independently.
Framework 01 determines how much risk I am willing to take.
Framework 02 determines where I am willing to look.
What This Framework Is Not
It Is Not A Prediction System. The framework does not attempt to identify the next winning stock.
It Is Not A Fundamental Screener. Because my holding periods are typically measured in days rather than years, valuation metrics such as PE, PB, or dividend yield are not primary inputs.
It Is Not An Automated Buy List. The framework identifies candidates. Trade selection happens later.
The Handoff
“Where should I look?”
“Which opportunity deserves capital?”
Version 0.1 — Thresholds and counts are provisional and will be refined as the framework evolves.
Frameworks are revised as the market teaches us something. Subscribers get the revision and the reason.
Market observations and one monthly letter.How the market is behaving, what it means for process, and where the reading breaks down. No tips. No noise.
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