Corroborate CANSLIM Approach of Investment in Indian Capital Markets

Abstract

The objective of this paper is to have a broad understanding of the CANSLIM [Current-earnings Annual-earnings New-product Supply-demand Leader-laggard Institution Market] theory of investment and also to identify stocks using this theory and to use it as a tool for investment. The hypothesis of the study is to check if the identified stocks outperform or they are in line with the index Nifty 50 of the National Stock Exchange. The interpretation of the data as seen in Table 1, the values required for the seven abbreviations of the CANSLIM approach. The data collated in the excel sheet and accordingly the stocks that fulfil the CANSLIM criteria were identified. Hence, the second best stocks that is which fulfil five out of seven mandates for CANSLIM are selected. The returns of the above selected stocks are then compared with the returns of the index Nifty 50.