| Purpose | Detect and analyze earnings surprises to identify trading opportunities from post-earnings price movements |
| Core Function | Compares actual earnings results against consensus estimates, calculates surprise magnitude, and generates signals based on historical post-earnings drift patterns |
| Peak Earnings Weeks | Most Nifty 50 companies report in concentrated periods • Usually 3rd and 4th week of reporting window • Heightened volatility during peak weeks |
| It Sector | TCS and Infosys typically report first • Sets tone for entire IT sector |
| Banking Sector | High market impact due to weight in indices |
| Sector Bellwethers | Maruti, M&M, Tata Motors • HUL, ITC, Nestle • Sun Pharma, Dr Reddy's, Cipla • Tata Steel, JSW Steel, Hindalco |
| Primary Metrics | Earnings Per Share • Profit After Tax • Total revenue/sales • Operating profit before interest, tax, depreciation |
| Guidance Importance | Revenue growth guidance critical • Credit growth and asset quality outlook • Volume growth and rural recovery |
| Bloomberg | Bloomberg consensus estimates |
| Reuters | Refinitiv I/B/E/S estimates |
| Brokerages | ICICI Securities • HDFC Securities • Kotak Securities • Motilal Oswal |
| Aggregators | Moneycontrol • Screener.in • Trendlyne |
| Challenge | Less analyst coverage for mid/small caps |
| Large Cap Beats | 5-15% beat • 2-5% move • 1-3 days of drift |
| Large Cap Misses | 5-15% miss • 3-8% decline • Can persist longer than beats |
| Mid Small Cap | Higher (5-20% moves common) • Can exaggerate moves |
| Guidance Impact | Often more important than current quarter beat • Can overwhelm a beat |
| Announcement Timing | Most results announced after 3:30 PM • Some announce before 9:15 AM (next day impact) • Rare, but possible |
| Board Meeting Disclosure | Companies inform exchanges about board meeting dates • Allows traders to know when results are coming • NSE/BSE corporate announcements |
| Conference Calls | Usually same day evening or next day • Management commentary often more impactful than numbers |
AlgoKing is a flight simulator for traders — real market data, real backtests, zero real-money risk.
Create your free accountEducational simulation platform. Not investment advice. No SEBI registration required.