⦿ Trend: Rally Attempt

⦿ Momentum: Negative but improving

⦿ Breadth: Higher timeframes bullish, but lower timeframes overbought

⦿ Bias: Bullish on both long-term & short-term

⦿ Most major indices (including Nifty, Midcap, Smallcap, CNX500, Banknifty) in rally attempt

⦿ Power, PSUbank, Media, Commodities, PSE, Energy & Metal in confirmed uptrend

⦿ IT is the only index in outright downtrend

⦿ Nifty Next 50, Midcap & Infra indices join Energy, Media & Power as indices with positive & improving momentum

⦿ Pharma, FMCG & PVTbank have short-term positive but long-term negative momentum

⦿ IT is the only index with negative & worsening momentum

Market breadth unchanged in this truncated week.Higher timeframes have bullish bias, while lower timeframes are still overbought.

⦿ 87% → 81% above 20 MA (overbought)

⦿ 76% → 74% above 50 MA (fresh buy signal)

⦿ 58% → 57% above 150 MA (bullish bias)

⦿ 58% → 58% above 200 MA (bullish bias)

The Ratio between stocks above & below 50MA is 3.4, while that for 20MA is 4.5. 

The 10-day cumulative ratio for stocks above 50MA is 1.6 now. A value >2 is good for swing trades on the long side.

The 10-day cumulative ratio between stocks up & down 4% in a day has been rising continuously & is now at 6. The last time we had such values was in January 2022, & it had been downhill since then. 

We may look for some cooling-off from here now.

On a modified Stockbee market monitor, both the short-term indicator of 13% up in 34 days & the long-term metric of stocks 25% plus quarter stay positive.

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 4.2.

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.

👉 Follow me on Twitter