# AI usage in stock market
**URL:** https://tradingqna.com/t/ai-usage-in-stock-market/198835
**Category:** Algos, strategies, code
**Created:** [October 14, 2026, 5:16pm UTC](https://tradingqna.com/t/ai-usage-in-stock-market/198835 "2026-10-14T17:16:29Z")
**Posts on this page:** 4
**Page:** 1
### Author:  [@sandeep\_cs](https://tradingqna.com/u/sandeep_cs)
#### Post date: [October 14, 2026, 5:16pm UTC](https://tradingqna.com/t/ai-usage-in-stock-market/198835/1 "2026-10-14T17:16:29Z")
Are you using AI (inbuilt or via external) to analyse portfolio and watchlist.
Also does AI helping you to Profitable options trading?
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### Author:  [@FVS](https://tradingqna.com/u/FVS)
#### Post date: [October 14, 2026, 6:02pm UTC](https://tradingqna.com/t/ai-usage-in-stock-market/198835/2 "2026-10-14T18:02:27Z")
Yes I do use Ai for both. Ai for investment analysis and Ai for coding algorithms (pinescript) for trading.
Investment analysis is what i started recently. I am amazed how useful it could be to use AI, Kite Connect free API and Obsidian notes app to create a complete financial hub of all needs for one which is automated and self updating.
Edited for spelling mistakes.
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### Author:  [@DishantSR](https://tradingqna.com/u/DishantSR)
#### Post date: [October 15, 2026, 4:25am UTC](https://tradingqna.com/t/ai-usage-in-stock-market/198835/3 "2026-10-15T04:25:26Z")
For portfolio and watchlist analysis it’s genuinely useful, as long as you feed it real data rather than asking it to recall numbers. What works well for me: export holdings (Console/CAS) or quarterly results into a CSV, then ask it specific questions like concentration by sector, which holdings drove most of the return, or what changed in margins quarter on quarter. Always spot-check figures against the filings, because models will confidently invent numbers if the data isn’t in front of them.
For options trading I’d be much more careful. It helps with coding and backtesting logic, but it can’t predict direction, and any edge has to come from your own tested rules and position sizing, not the model.
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### Author:  [@sandeep\_cs](https://tradingqna.com/u/sandeep_cs)
#### Post date: [October 15, 2026, 5:14am UTC](https://tradingqna.com/t/ai-usage-in-stock-market/198835/4 "2026-10-15T05:14:34Z")
I Use Broker provided AI to analyse portfolio and watchlist so that it can take real time data . I Use claude + kite MCP for Gsec bids above 7.3 eff yield
AI prompts are here (suggestion and improvements are always welcome)
> **Watchlist**
>
> Analyse only stocks in my watchlist and screen.
> Price per share should be less than 1000 .
>
> Act as an independent Indian equity research analyst. Identify 20 fundamentally strong NSE/BSE-listed companies with potential to deliver 3x–10x returns over 5–10 years. Focus on emerging multibaggers, not stocks that have already experienced extreme price appreciation.
>
> Use the latest available financial results, annual reports and exchange filings. Never fabricate data. Clearly distinguish facts from estimates.
>
> **1. FUNDAMENTAL SCREENING**
>
> Preferred criteria:
>
> - Market Cap: ₹500–30,000 Cr.
> - P/E: Below 50, preferably below industry median.
> - ROCE: Above 15%; ROE: Above 12%.
> - Debt/Equity: Below 0.5.
> - Revenue CAGR (3Y): Above 10%.
> - Profit CAGR (3Y): Above 12%.
> - Operating Cash Flow: Positive, preferably for 3 consecutive years.
> - Promoter Holding: Stable or increasing YoY.
> - Promoter Pledging: Preferably zero.
> - Operating Margin: Stable or improving.
> - EPS: Positive with consistent growth.
>
> Use sector-specific financial metrics for banks, NBFCs and insurers. Allow justified exceptions for otherwise exceptional businesses.
>
> **2. EARLY MULTIBAGGER SIGNALS**
>
> Prioritise companies exhibiting at least 3 signals:
>
> - Latest revenue growth accelerating versus historical CAGR.
> - Profit growth exceeding revenue growth.
> - Improving ROCE and operating margins.
> - New capacity, products or geographic expansion.
> - Growing order book supported by execution.
> - Market share gains and competitive advantages.
> - Improving free cash flow.
> - Debt reduction alongside earnings growth.
> - Sustainable industry tailwinds.
> - Increasing institutional participation.
>
> Investigate whether growth is sustainable or caused by one-time gains, low-base effects or commodity cycles.
>
> **3. BUSINESS QUALITY**
>
> Evaluate:
>
> - Competitive moat and pricing power.
> - Management execution and capital allocation.
> - Industry growth potential.
> - Ability to double/triple revenue in 5 years.
> - Scalability without excessive debt or dilution.
> - Customer concentration and working-capital efficiency.
> - Ability to sustain 20–30% earnings growth.
>
> Prefer companies where multiple growth drivers operate simultaneously.
>
> **4. VALUATION**
>
> Compare current P/E against historical averages and industry peers. Examine PEG, EV/EBITDA, cash flow and earnings expectations.
>
> Calculate 5-year bear, base and bull scenarios using:
>
> Future Price = Estimated Future EPS × Terminal P/E.
>
> Show implied CAGR and assumptions. Do not automatically assume P/E expansion. Identify whether future growth is already priced in.
>
> **5. TECHNICAL CONFIRMATION**
>
> Analyse weekly charts for:
>
> - Higher highs and higher lows.
> - Cup-and-handle or constructive consolidation.
> - Price versus 50-week moving average.
> - Breakout supported by rising volume.
> - Relative strength versus NIFTY 500.
> - Distance from 52-week high.
>
> Classify each company as:
> A. Fundamentally attractive, technically ready.
> B. Fundamentally attractive, waiting for entry.
> C. Fundamentally attractive, overextended.
> D. Technical strength without fundamental confirmation.
>
> **6. GOVERNANCE & RISK**
>
> Check auditor resignations, promoter pledging, related-party transactions, equity dilution, contingent liabilities, regulatory issues, receivables growth and profit-to-cash-flow conversion.
>
> Reject companies with material unresolved governance concerns.
>
> **7. MULTIBAGGER SCORE (100 POINTS)**
>
> - Business Quality: 20
> - Revenue & Earnings Growth: 20
> - Financial Strength: 15
> - Future Growth Catalysts: 15
> - Valuation: 15
> - Management & Governance: 10
> - Technical Confirmation: 5
>
> 85–100: High-priority research.
> 70–84: Promising candidate.
> 55–69: Watchlist.
> Below 55: Reject/Monitor.
>
> Scores represent research attractiveness, not guaranteed returns.
>
> **8. FINAL OUTPUT**
>
> Present the top 20 companies in a ranked table:
>
> Stock | Sector | Market Cap | P/E | ROCE | D/E | 3Y Sales CAGR | 3Y Profit CAGR | Score
>
> For the top 5, explain:
>
> 1. Why it could become a multibagger.
> 2. Key growth catalysts and competitive advantages.
> 3. Financial and governance risks.
> 4. Current valuation and technical entry assessment.
> 5. Bear/base/bull 5-year scenarios.
> 6. Conditions required for 3x or 5x returns.
> 7. Events that would invalidate the investment thesis.
>
> Finally, categorise companies into:
> A. Early-stage multibagger candidates.
> B. Quality businesses waiting for better valuations.
> C. Rejected companies with reasons.
>
> IMPORTANT: Cite financial sources and reporting dates. Do not invent figures, target prices or technical signals. Prioritise sustainable earnings growth, improving cash flow, strong management and reasonable valuations over market hype. This is research screening, not a guaranteed buy recommendation.
Then
> **Gsecs**
>
> Find Indian Government Securities (G-Secs) that meet all of the following conditions:
>
> 1. Effective yield (YTM): ≥ 7.3% per year
> 2. Maturing before 2040
> 3. Make sure its not present in our 10K sec list
> 4. The security must have units/shares currently available for purchase on Zerodha/Kite, not merely a security that exists in the market.
> 5. Check the current market price, face value, coupon rate, maturity date, and current YTM/effective yield.
> 6. Confirm the ISIN and trading symbol so I can identify the exact security.
> 7. Exclude securities where the displayed yield is based on stale/old data or where there is no current quantity available to buy.
> 8. If multiple G-Secs qualify, list all qualifying securities and sort them by effective yield, highest first.
>
> Analysis/research only. Do NOT place, initiate, or simulate any order.
> Do not recommend that I buy any particular security.
> I only want factual data and a comparison.
> Use the latest available market/order-book data, preferably from Zerodha/Kite
> If no G-Sec satisfies all conditions, say “No qualifying G-Sec found” rather than relaxing the 7.3% yield requirement.
> Distinguish between YTM/effective yield and coupon rate. I am specifically looking for effective yield/YTM ≥7.3%.