Plain-English definitions of the terms used across JaySense.
A composite score from 0 to 100 assigned to every NSE stock by the JaySense engine. It aggregates nine independent dimensions — Trend, Momentum, Volume Profile, Fundamental Quality, Valuation, Growth, Institutional Activity, Sector Positioning, and Risk Profile — into a single number. A higher score means the stock currently shows stronger technical momentum and better fundamental quality. It is not a buy or sell recommendation and does not predict future price movement.
Scores above 70 represent strong technical alignment — historically the highest win-rate band in JaySense's weekly validation. See How JaySense Scores Stocks for the full breakdown.
A stock that the JaySense engine has scored above a configured threshold and flagged as worthy of further research. Being a Research Candidate means the quantitative signals are aligned favourably — it does not mean the stock will go up. The term deliberately avoids "buy" or "pick" because JaySense is a research tool, not a broker. A candidate still requires your own due diligence: check the fundamentals, the news, and the macro context before making any investment decision.
A price structure where a stock has formed a clear short-to-medium term directional pattern suitable for a swing trade — typically a holding period of 3 to 30 trading days. JaySense identifies swing setups by evaluating the alignment of trend, momentum, and volume signals across daily charts. A Breakout setup suggests price is attempting to move above a key resistance level. A Mature setup means the trend is established and well-confirmed. A Recovery setup indicates a bounce from oversold levels within a broader uptrend.
A count of how many of the nine JayScore sub-dimensions are simultaneously bullish for a given stock. Higher convergence (e.g., 7 of 9) means more signals are aligned in the same direction, which historically correlates with higher-probability outcomes. Convergence is distinct from the raw score — a stock can have a high score driven by two very strong dimensions, or a moderate score spread evenly across all nine. A high convergence count at a high score is generally more reliable than a high score with low convergence.
A moving average that weights recent prices more heavily than older ones. Unlike a Simple Moving Average (SMA), the EMA reacts faster to price changes. Common periods on NSE: 20-day EMA (short-term trend), 50-day EMA (medium-term trend), 200-day EMA (long-term trend). A stock trading above all three is typically in a strong uptrend; below all three is in a downtrend. EMA crossovers — e.g., the 20 crossing above the 50 — are commonly used as trend-change signals.
A momentum oscillator ranging from 0 to 100, developed by J. Welles Wilder. RSI measures the speed and magnitude of recent price moves. Readings above 70 are conventionally considered overbought; below 30, oversold. In strong trends, overbought can persist for extended periods — a rising RSI in an uptrend is more often a sign of strength than of an imminent reversal. JaySense uses RSI as one input in the Momentum dimension, calibrated for the Indian equities context rather than using raw textbook thresholds.
A trend-following momentum indicator that shows the relationship between two exponential moving averages of a stock's price. The standard setup uses a 12-period EMA minus a 26-period EMA (the MACD line), smoothed by a 9-period signal line. When the MACD line crosses above the signal line, it suggests building bullish momentum; a cross below suggests bearish momentum. The histogram — the difference between the two lines — shows momentum acceleration or deceleration. JaySense uses the MACD histogram direction as a signal input, not crossovers in isolation.
A trend-following indicator that plots a line above or below price based on volatility (ATR) and a multiplier. When price is above the SuperTrend line, the indicator is bullish; when price falls below, it flips bearish. SuperTrend is popular in Indian equities because it adapts to volatility and gives clean, flip-once-per-move signals without the lag of pure moving average crossovers. JaySense uses SuperTrend direction as a primary input in the Trend dimension.
In the context of stock research, momentum refers to the tendency of a stock's price to continue moving in its current direction. Positive momentum means the stock has been appreciating — buyers are persistently willing to pay higher prices. Negative momentum means sellers are in control. Momentum is self-reinforcing: institutional investors tend to buy stocks that are already rising, which accelerates the move. JaySense's Momentum dimension scores the strength and direction of this force using multiple oscillator and rate-of-change signals.
A measure of how efficiently a company generates profit from shareholders' equity. ROE = Net Profit ÷ Shareholders' Equity, expressed as a percentage. An ROE above 15% is generally considered good for Indian businesses, though the threshold varies by sector — banks and NBFCs typically run higher ROEs. A rising ROE over time suggests improving capital efficiency; a falling ROE warrants investigation. JaySense uses ROE as a component in the Fundamental Quality dimension.
ROCE = EBIT ÷ Capital Employed (total assets minus current liabilities). Unlike ROE, ROCE includes debt in the denominator — making it a more complete measure of how efficiently management uses all capital, not just equity. A company with a high ROCE can be genuinely capital-efficient; a company with a high ROE but low ROCE may be taking on excessive debt to boost returns. ROCE above the company's cost of capital means it is creating value; below means it is destroying it.
FIIs (Foreign Institutional Investors) are overseas funds and institutions — global asset managers, hedge funds, sovereign wealth funds — that invest in Indian equities. FII flows are the dominant driver of short-term index direction; large FII selling often triggers market-wide corrections regardless of underlying business performance. DIIs (Domestic Institutional Investors) include Indian mutual funds, insurance companies, and pension funds. DII buying frequently cushions FII outflows. JaySense tracks quarterly shareholding changes (FII and DII holding % change) as an input in the Institutional Activity dimension.
F&O stocks are those listed on NSE's derivatives segment — they have futures contracts and options (calls and puts) available for trading. F&O availability matters for research because: (1) these stocks tend to be more liquid, with tighter spreads and faster price discovery; (2) options data (open interest, implied volatility) provides additional information about market expectations; (3) the BSE/NSE lot files define which stocks are eligible and at what lot sizes. JaySense uses F&O availability as a factor in the Risk dimension — F&O-eligible stocks are generally less prone to circuit-filter halts.
A classification of a sector's current momentum relative to the broader Nifty index. JaySense assigns each sector one of three regimes — Bullish (sector is outperforming, relative strength is rising), Neutral (sector is moving broadly with the index), or Bearish (sector is underperforming, relative strength is weakening). The regime is derived from the sector's relative strength rank among all NSE sectors, tracked weekly. Trading stocks in Bullish sectors has historically produced better average outcomes than trading the same score in a Bearish sector.
A classification of the overall NSE market environment — typically Bull, Bear, or Neutral. JaySense derives the market regime daily from a composite of index-level signals: Nifty 50 trend, India VIX level, advance-decline ratio, and stocks above key moving averages. The regime is shown on the Market Health page and on the Dashboard. Research Scores remain valid in all regimes but their historical edge is stronger in Bull regimes and compresses in Bear regimes — a score of 72 in a Bear market still signals a relatively strong stock, but overall headwinds are higher.
Email us at support@jaysense.com and we'll add it. For a deeper look at how the score works, see the Research Methodology page.