Vishant Pai 🔺 Profile picture
Jan 26 • 16 tweets • 13 min read
A Thread on Ratio analysis and respective charts
No need to grab a coffee,Chai will do😄

The idea is to identify relatively stronger sectors & stocks when breadth is weak

Breadth=DT 1% (No of stocks in Double top buy on 1% PnF chart)

Breadth started falling from 14th Jan 2022
So we need to identify sectors which remained resilient when market breadth was falling.

We will look back 8 trading sessions and any score above or equal to 5 is bullish (63% of times Sector outperformed benchmark)
Mean reversals are best suited for current market breadth scenario. Once we have identified the sector the next step is to identify stocks in same fashion.

However the idea is to pick only stocks which are taking support near 50 or 200 EMA

Let us begin with first sector 👇
Sector 1 - Nifty Energy - Score 7

#IOC - 50 EMA
#TATAPOWER - 50 EMA
#GAIL - 50 and 200 EMA
#NTPC - 50 EMA (Holding)
Energy Continued
#Reliance - 200 EMA
Sector 2 - Oil and Gas - Score 6
#Oil - 50 EMA
#Hindpetro - 50 EMA
Sector 3 - Auto - Score 6
#HeroMoto - 200 EMA
#EicherMoto - 50 and 200 EMA
#ExideInd - 50 and 200 EMA
#MnM - 50 EMA
Sector 3 .. cont
#TataMotors - 50 EMA
#AshokLey - 50 EMA
#Balkrisind - 50 EMA
Sector 4 and 5 - PSE and CPSE - score 6
Most of the charts covered in Energy and Oil-Gas
Sector 6- Banks - Score 6
#SBIN - 50 EMA (Holding)
#FederalBank - 50 EMA
#AxisBank - 50 and 200 EMA
#KotakBank - 200 EMA
#ICICIBank - 50 EMA (Wait for FT)
#PNB - 50 and 200 EMA (Holding)
Sector 7 - Infra - Score 5
#ACC - 200 EMA
#DLF - 200 EMA
#LT - 50 EMA
Sector 8 - Consumption - Score 5
#DMART - 200 EMA
#Bhartiartl - 50 EMA
Sector 9 - Commodities - score 5
Stocks covered in previous sectors

Sector 10 - Realty - score 5
Stocks covered in previous sectors (DLF), Lodha is at 50 EMA support
Sector 11 - Financial Services - Score 5
#SBILIFE - 50 EMA
#MuthootFin - 200 EMA
Sector 12 - Private bank
Stocks covered in previous sector.

Dont jump right in to these stocks. Wait for column reversals on 1% and on EOD basis.

I personally prefer weekly ATR for positional sizing so risk per scrip is fixed.

Almost 30 stocks and 12 sectors covered!
Missed couple of charts from Realty.

Sunteck, Brigade, Oberoi and Prestige are all at 50 EMA support

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More from @vishantpai

Dec 5, 2021
Thread: Mean reversal setup

First I would like to credit @kaushikaki Professor for imparting a new perspective to Mean reversal setup (89/200 EMA supports)

I have further fine tuned the setup to include Market breadth, Relative strength and Price performance.
1. Market breadth - This setup is ideal when market breadth (DT% on 0.25) is below 10. Which means out of 50 stocks in Nifty 50 Index only 5 stocks are in double top buy. Indicating a bearish tone.

2. Filter strong fundamental companies - I use @TickertapeIN to identify
Following are the conditions:
a. Market cap above 2500 crores
b. 5Y Historic Cash flow growth above 10%
c. Price above 30

3. On this group identify stocks which are taking support on 89 and 200 EMA channel (H/L) - Manual scan

4. Make a group of these stocks
Read 8 tweets

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