Nitin Ranjan

October 21, 2022

WeeklyIndexCheck CW42/2022

Market Quadrant

⦿ Trend: Uptrend under pressure
⦿ Momentum: Positive & improving
⦿ Breadth: Bearish
⦿ Bias: Bullish
⦿ Swing Confidence: 100

Trend

⦿ Most indices are in an uptrend under pressure. 
⦿ Banknifty (plus both Psubank & Pvtbank) are now in confirmed uptrend.
⦿ Media, Energy & PSE are in a confirmed downtrend.
⦿ IT & Pharma are in a rally attempt.

Momentum

⦿ Nifty, Banknifty & Smallcap now have positive & improving momentum.
⦿ Midcap & CNX500 still have positive but worsening momentum.
⦿ Auto, Power & Realty indices have negative & worsening momentum.
⦿ Long-term momentum will still take time to turn positive.

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Swing

⦿ Both Nifty & Smallcap index are in Confirmed Upswing. Both indices are in a weekly upswing.
⦿ Swing Confidence is now 100. Long-only swing traders would be all-in now.
⦿ IT & Financials are also in a confirmed upswing. 

Breadth

⦿ Market breadth not improving. 
⦿ Participation lacking, as evident from % of stocks above all key moving averages being less than 50%.
⦿ Intermediate timeframes still await fresh buy signal. 
⦿ Higher timeframes are now bearish.

Bias

⦿ On a modified Stockbee market monitor, the short-term indicator of 13% up in 34 days is negative for 2nd consecutive week.
⦿ The intermediate 25% plus in a month stays positive for 15th consecutive week.
⦿ The long-term metric of stocks 25% plus in a quarter stays positive for 14 consecutive weeks now.

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Overall, the market is bullish for 14th consecutive week, as the number of stocks up 25% plus in a quarter stays greater than that down 25% plus in a quarter. The ratio between the two is the primary breadth ratio, which is now 3.7.

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About Nitin Ranjan

Swing Trader | Growth Investor | Pine Coder