⦿ Trend: Confirmed Downtrend

⦿ Momentum: Negative & worsening

⦿ Breadth: Weak, with higher timeframes bearish

⦿ Bias: Bearish on short & intermediate timeframes

Exactly the same as last month

⦿ Almost all indices are in confirmed downtrend

⦿ Only PSE, Power & Energy in uptrend under pressure

⦿ No index in confirmed uptrend

⦿ No index with positive momentum

⦿ Energy & Power join most major indices (Nifty, CNX500, Midcap, Smallcap) with negative & worsening momentum.

⦿ FMCG, Pharma & Auto indices have negative but improving momentum

Market breadth slightly less worse from last week’s levels. 

Higher timeframes still have bearish bias, while lower & intermediate timeframes are only mildly oversold.

⦿ 4% → 21% above 20MA (near oversold)

⦿ 11% → 21% above 50MA (near oversold)

⦿ 20% → 26% above 150MA (bearish)

⦿ 25% → 31% above 200MA (bearish)

The Ratio between stocks above & below 50MA is 0.3, while that for 20MA is 0.29. 

The 10-day cumulative ratio for stocks above 50MA is 0.18 now. A value >2 is good for swing trades on the long side.

On a modified Stockbee market monitor, the short-term indicator of 13% up in 34 days stays negative for past 2 weeks. While the intermediate 25% plus in a month is negative since past week, the long-term metric of stocks 25% plus quarter is back to being positive.

The 10-day cumulative ratio (10-DCR) between stocks up & down 4% in a day is still below 1.

When market is in bearish phase, a fresh bull move starts when 10-DCR first time crosses above 2.

Overall, the market is now 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 1.05.

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