April 2026 · 10 min read

Mark Minervini

The Trend Template & SEPA Method

A self-taught trader who went from near-zero to compounding 220% annual returns over five years. His SEPA methodology distilled the common DNA of every superperformer stock into an 8-point checklist — and that checklist is now a one-click filter inside Kasauti.

220%
Avg Annual Return (5 yrs)
33,500%
Cumulative over 5 years
US Investing Champion
155%
Championship Year Return

The methodology at a glance

SEPA (Specific Entry Point Analysis) identifies stocks in a confirmed Stage 2 uptrend positioned for further upside. The Trend Template is the quantitative filter — eight criteria that every stock must pass simultaneously. This is strict by design: the best opportunities scream strength from every angle.

The 8-Point Trend Template

  1. Price above the 50-day moving average
  2. Price above the 150-day moving average
  3. Price above the 200-day moving average
  4. 50-day MA above the 150-day MA
  5. 150-day MA above the 200-day MA
  6. 200-day MA trending upward (Kasauti uses a stricter 63 trading-day lookback)
  7. Price within 25% of the 52-week high
  8. Price at least 30% above the 52-week low

Who is Mark Minervini

Mark Minervini started trading in the mid-1980s with almost no capital and no formal financial education. His early years were marked by losses — by his own account, he spent years losing money before he figured out what worked. What changed his trajectory was a methodical study of the greatest stock market winners in history, identifying the characteristics they shared before their biggest moves.

Between 1994 and 1999, Minervini compounded his personal account at roughly 220% per year, producing a 33,500% cumulative return with only one losing quarter in that entire stretch. He won the U.S. Investing Championship in 1997 with a 155% return, and again in 2021. His system is entirely rules-based — no discretion required.

Key principle: Minervini doesn't predict winners. He identifies the conditions present in every past big winner — then targets stocks matching those conditions today. The checklist does the work.

How Kasauti implements it

Clicking the Minervini button runs all eight SEPA criteria server-side across the entire NSE universe. Every stock that passes all eight appears in the results, and each card shows its Minervini score (8/8, 7/8, etc.) for instant compliance visibility. The implementation uses a stricter 63-day lookback for criterion 6, favouring well-established trends over those that have only recently turned up.

Each result card includes the stage classification, RS Rating, and key price levels — so you can act on the filter output directly or dive into the chart modal for a deeper look at volume, base formation, and entry timing.

Kasauti Insight · Nuances for Indian markets

The Trend Template behaves slightly differently on NSE stocks compared to US markets because of structural differences in how Indian stocks trade. NSE midcap and smallcap stocks tend to move in sharper, faster cycles than comparable US stocks, meaning Stage 2 advances can compress into shorter timeframes and corrections can be more violent. This has two practical implications for applying Minervini on the NSE.

First, the volume confirmation on a Minervini setup matters more on Indian smallcaps than on largecaps because smallcap liquidity can dry up quickly during corrections. When scanning smallcap names with Kasauti's Minervini filter, always check the volume pattern in the chart modal before considering a setup.

Second, the 25% proximity-to-52-week-high criterion can be too loose for Indian midcaps in strong bull markets — many midcaps run 40%+ above their prior 52-week high during a trending move. In these conditions, the filter will still flag these stocks as valid because they remain in Stage 2, but the risk-reward on a new entry is diminished compared to stocks in the earlier innings of their advance.

200 DMA 150 DMA 50 DMA 52W High 52W Low 8/8 The Ideal Minervini Setup Price above all MAs · MAs stacked (50 > 150 > 200) · 200 DMA trending up · Near 52W high For representation only
The ideal Minervini Trend Template — price above all three moving averages, MAs stacked bullishly, near 52-week high.

Frequently Asked Questions

Is Mark Minervini's Trend Template effective for NSE stocks?

The Trend Template is market-agnostic — it measures the technical structure of a stock's moving averages and price position, which behaves the same way in India as in the US. The logic works identically on NSE stocks. What differs is the universe size (roughly 2,100 actively traded NSE stocks versus 6,000+ in the US) and the typical number of stocks that pass the filter in any given week, which depends on overall market conditions.

How many NSE stocks typically pass the 8-point Minervini Trend Template?

In a strong bull market, 100–250 NSE stocks may pass all 8 criteria. In a correction or sideways market, this can drop to under 30. The count itself is a useful market health indicator — when fewer stocks qualify, the market is narrowing, and you should be more defensive.

What's the difference between Minervini's SEPA and the Trend Template?

The Trend Template is the technical screening filter — the 8 criteria that identify stocks in a strong Stage 2 uptrend. SEPA (Specific Entry Point Analysis) is the broader framework that combines the Trend Template with volume analysis, proper base formation, and precise entry timing at pivot points. Kasauti implements the Trend Template as a one-click filter; the SEPA entry decision remains with you.

Why does Kasauti use a 63-day lookback for the 200 DMA trend criterion?

Minervini's original criterion requires the 200 DMA to be trending upward for at least one month (roughly 22 trading days). Kasauti uses a stricter 63 trading-day lookback (approximately 3 months) to filter out stocks whose 200 DMA has only recently turned up. This produces fewer but higher-quality results, favouring well-established trends over potential head fakes.

Does the Minervini method work in Indian sideways or bear markets?

The method works in the sense that it correctly identifies that very few stocks qualify as buyable in those conditions. In a weak Indian market (for example during prolonged FII selling), the Minervini filter might return only a handful of stocks — mostly defensives or counter-cyclical leaders. The filter doesn't fail; it tells you to be patient and preserve capital until conditions improve.

Apply Minervini's Trend Template to NSE — one click

Kasauti runs all 8 SEPA criteria across 2,100+ stocks every day. See which ones pass right now.

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Disclaimer: This article is for educational purposes only and does not constitute investment advice or stock recommendations. Past performance does not guarantee future results. Please consult a SEBI-registered investment advisor before making investment decisions. Kasauti is a stock screening tool and does not provide buy, sell, or hold recommendations.