⦿ Trend: Rally Attempt

⦿ Momentum: Negative but improving

⦿ Breadth: Weak but improving on all timeframes

⦿ Bias: Long-term bullish, short-term still bearish

⦿ Most major indices (including Nifty, CNX500, Banknifty) are now in a rally attempt

⦿ Media & Commodities now join Energy & Metal to have confirmed uptrend status

⦿ Smallcap & Midcap pretty close to a rally attempt

⦿ Metal index still the only one with positive momentum

⦿ Majority of indices (including Nifty, Banknifty, CNX500, Midcap & Smallcap) have negative but improving momentum

Higher timeframes stay bearish, while very short-term timeframes nearing overbought levels.

⦿ 51% → 70% above 20 MA (near overbought)

⦿ 21% → 30% above 50 MA (neutral)

⦿ 38% → 41% above 150 MA (bearish bias)

⦿ 42% → 45% above 200 MA (bearish bias)

The Ratio between stocks above & below 50MA is 0.4, while that for 20MA is 2.6. The 10-day cumulative ratio for stocks above 50MA is 0.2. A value >2 is good for swing trades on the long side.

The number of stocks up 20% in past 5 days gave a bullish upthrust this week, that didn't sustain.

On a modified Stockbee market monitor, the short-term bearish phase (13% up in 34 days) continues for fourth consecutive week, but the long-term metric of stocks 25% plus quarter is now back in the green.

Overall, the market is bullish, as the number of stocks up 25% plus in a quarter is now greater than that down 25% plus in a quarter. The ratio between the two is the primary breadth ratio, which is now greater than 1.

That’s all for this week. If you'd like to know when I publish something new, just subscribe to my newsletter and you'll get the latest sent direct to you.

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