Business & Finance
Analysts Turn to Data Scoring Models to Identify Resilient Stocks Amid Nifty 50 Slump
By Riya Kapoor
As the Nifty 50 index posts a fourth consecutive week of declines, market analysts are turning to institutional-grade scoring systems to pinpoint stocks capable of withstanding ongoing volatility. The index has entered a phase of cautious consolidation, trading below its 20, 50, 100, and 200-day moving averages, prompting a shift away from sentiment-based analysis toward more structured, data-driven stock selection. To achieve this, researchers are applying the Stock Reports Plus framework, powered by Refinitiv, which assigns Nifty 50 constituents a score ranging from 1 to 10. The model evaluates companies across five equally weighted pillars: earnings, fundamental health, relative valuation, risk profile, and price momentum. Stocks scoring between 8 and 10 are generally viewed as more stable, typically showing consistent profitability, manageable debt, and favorable historical earnings revisions. This analytical approach comes as Indian equities face mounting macroeconomic pressure. Brent crude oil prices have remained elevated, trading between $95 and $96 per barrel, driven partly by geopolitical tensions in West Asia, raising concerns about inflation and corporate margins. Persistent selling by foreign institutional investors (FIIs) has further weighed on the index, while uncertainty over the US Federal Reserve's interest rate trajectory continues to add to investor caution. These combined pressures have led to notable selling in sectors such as IT, Auto, and Healthcare. On the technical front, the Nifty 50 has established immediate support between 23,600 and 23,800; a break below this range could trigger further downside. Resistance is seen in the 24,000 to 24,050 zone, and analysts are watching whether the index can stabilize above current support levels. Going forward, market focus is expected to center on earnings consistency, debt management, and companies' ability to maintain dividend payouts despite sector-wide pressures. Tracking performance against the five analytical pillars may help identify stocks with the fundamental strength to recover once market volatility eases.