🎯 Conviction Ranking Guide

Multi-Scan Setup Concurrence · 7 Trade-Readiness Signals · High-Conviction Tiers

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Published: May 27, 2026  |  8 min read  |  Platform Guide  |  Conviction

Multimedia Learning Hub

Identify stocks matching multiple strategies simultaneously — filtering down to institutional consensus

What You Will Master

The Conviction Ranking scanner processes 32 distinct quantitative and fundamental screener models nightly. By aggregating individual hits into a single count, it highlights stocks where multiple independent strategies are firing simultaneously. This guide covers how to interpret scan counts, verify the 7 readiness indicators, understand row caps, and apply a top-down workflow.

What This Guide Covers:

  1. The Conviction Concept — why matching multiple screens is an institutional buying signal
  2. 7 Readiness Signals Explained — checking breakouts, EMA hugging, relative strength, sector rotation, catalyst scores, PEAD, and corporate guidance
  3. Scan thresholds — interpreting 1-scan, 2-scan, and 3+ scan matches
  4. Free vs Premium Limits — row caps (40 vs 200) and scan gating rules
  5. Top-down momentum workflow — integrating Breadth, RRG, RS, and Conviction
What does the Conviction Score measure?
It represents how many individual screener presets (out of 32 total) a stock matches simultaneously. A higher score means more technical and fundamental models agree on the stock's setup.
What are the 7 Trade Readiness signals?
They are: Near 52W High, Hugging 10 EMA, RS ≥ 60, Sector Breadth ≥ 60%, Earnings Catalyst Score (ECS) ≥ 70, Active PEAD drift (last 30 days), and Positive Management guidance (guidance score ≥ 60).
How does a stock achieve a high readiness count?
By aligning indicators on multiple timeframes and factors. For example, a 5/7 readiness score means the stock is not just meeting relative strength criteria, but is also constructively placed near its 52W high and 10 EMA, with supportive earnings catalysts and active post-earnings volume drifts.
Why is the 3+ scan tier locked for Free users?
Free tier users are capped at exactly 2 scans (up to 40 rows) as a baseline. Stocks matching 3+, 4+, or 5+ screens simultaneously are high-conviction leaders reserved for Premium users due to their premium data inputs (e.g. guidance tone trackers and catalyst scores).
What is a top-down momentum workflow?
1. Breadth: Check market health. 2. RRG: Find leading sectors. 3. RS Momentum: Find leading stocks within those sectors. 4. Conviction: Confirm the stock has convergence across multiple setup strategies.
How often is the Conviction Ranking updated?
Daily after market close at 4:45 PM IST via Cron 51. The script aggregates screener snapshots and updates rankings, providing fresh daily metrics.

1. What is Conviction Ranking?

The Conviction Ranking is an institutional-grade scanner that ranks Nifty 500 stocks based on the number of individual Finmagine screener presets they match simultaneously. Out of 32 distinct screener models evaluated nightly (spanning growth, quality, value, momentum, turnaround, and institutional ownership), the stocks at the top represent names where multiple strategies are converging.

In quantitative investing, this is known as strategy confluence. When a stock is flagged by a single screener (e.g., Value Buys), it may be a decent candidate. But when the same stock is simultaneously flagged by Quality Compounders, FCF Machines, RS Momentum, and Promoter Conviction, it indicates a highly unusual alignment that is typically driven by aggressive, multi-week institutional accumulation.

Confluence Principle: Strategy overlap reduces noise. A stock matching 4+ distinct screens represents the highest-conviction segment of the market, proving it satisfies multiple independent technical and fundamental frameworks at once.

2. The 7 Trade-Readiness Signals

To help you determine how close a high-conviction stock is to an actionable entry point, the page displays a Readiness Badge (formatted as X/7). This represents how many of our 7 proprietary trade setup filters are currently met. Hovering the badge displays the status checklist:

5/7High Readiness — strongly aligned breakout candidate
3/7Moderate Readiness — consolidating or building a base
1/7Low Readiness — setup requires more time to align
Signal Key Readiness Metric Description & Thresholds
near_52wh Near 52W High Stock is within 10% of its 52-week price high. Strong resistance is close to being cleared.
near_ema10 Hugging 10 EMA Price is within 3% of its 10-day Exponential Moving Average. Shows a tight pull-back entry point.
rs_tier RS Rating ≥ 60 Stock has strong relative price strength (A-Tier or S-Tier), outperforming at least 60% of Nifty 500 peers over 12 months.
sector_breadth Sector Breadth ≥ 60% The stock belongs to a sector where at least 60% of constituent stocks are trading above their 50 DMA. Indicates strong sector tailwinds.
ecs Earnings Catalyst Score ≥ 70 The stock achieved an Earnings Catalyst Score (ECS) of 70 or higher in its recent quarterly results (strong fundamental growth momentum).
pead Active PEAD Drift A Post-Earnings Announcement Drift signal is active (volume surge and price breakout detected within 30 days after earnings).
tone Positive Management Tone The AI Guidance Tone Tracker detected a score of 60 or higher on the management concall, showing strong positive guidance.

3. Matched Scan Thresholds

The **Min Scans Matched** chip filter allows you to select the baseline level of strategy confluence:

Sizing Strategy: In healthy, uptrending markets, focus on the 3+ and 4+ scan lists to find leaders setting up bases. In sideways or choppy markets, the list of 4+ scan stocks will shrink dramatically — this provides a natural risk-reduction filter by pointing only to the absolute strongest names.

4. Free vs. Premium Access Tiers

To balance system resources and reward premium members, access to the Conviction Ranking table is tiered:

Access Tier Row Count Cap Available Scan Filters Data Scope
Guest & Free Users Max 40 rows Exactly 2 scans matched only Access to baseline confluence lists, displaying up to 40 stocks. Higher filters are locked.
Premium Users Max 200 rows Full access: 2+, 3+, 4+, and 5+ scans Complete table of up to 200 high-conviction names. Access to guidance tone, catalyst scores, and advanced filters.

5. The Top-Down Momentum Workflow

Do not buy a conviction stock in isolation. The highest-probability trades occur when a high-conviction setup aligns with broad market health and sector rotation. Use this 4-step workflow:

Step 1 — Market Breadth (Broad Health)

Open the Market Breadth Guide. Confirm that broad market indicators are supportive (e.g. Nifty 500 above 50/200 DMA is $\ge 50\%$). If breadth is expanding, setups are far more likely to follow through.

Step 2 — Sector Rotation (Sector Tailwinds)

Open the Sector RRG Guide. Identify which sectors are inside the Leading quadrant or showing constructive trails in the Improving quadrant. Focus your attention on those sectors.

Step 3 — Relative Strength Leaders

Filter the RS Momentum Scanner by the leading sector to find individual RS S-Tier (80–99) leaders in that space.

Step 4 — Conviction Ranking (Setup Concurrence)

Open the Conviction Ranking table and filter by the leading sector. Look for stocks with 3+ scans matched and high Readiness scores (4/7 or higher). When a stock matches 3+ screeners, belongs to a leading sector, and shows tight pullback consolidation (Hugging 10 EMA), it represents a high-conviction setup.

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