Nitin R Profile picture
May 13 9 tweets 4 min read
#WeeklyIndexCheck CW19/2022

Market Quadrant:
⦿ Trend: Confirmed Downtrend
⦿ Momentum: Negative & worsening
⦿ Breadth: Worsening & oversold
⦿ Bias: Bearish on all timeframes Image
Trend

⦿ Almost all indices are in confirmed downtrend
⦿ Only PSE, Power & Energy in uptrend under pressure
⦿ No index in confirmed uptrend Image
Momentum

⦿ Almost all indices (including Nifty, Banknifty, CNX500, Midcap, Smallcap) have negative & worsening momentum.

⦿ Only Energy & Power still have positive (but worsening) momentum Image
Market breadth worsening on all timeframes. Higher timeframes have bearish bias, while lower & intermediate ones well oversold.

⦿ 9% → 4% above 20MA (highly oversold)
⦿ 30% → 11% above 50MA (oversold)
⦿ 31% → 20% above 150MA (bearish)
⦿ 35% → 25% above 200MA (bearish) Image
% of stocks above/below 20& 50MA

The Ratio between stocks above & below 50MA is 0.14, while that for 20MA is 0.04.

The 10-day cumulative ratio for stocks above 50MA is 0.3 now. A value >2 is good for swing trades on the long side. Image
Bias

On a modified Stockbee market monitor, the short-term indicator of 13% up in 34 days was already negative since past week.

Now, the intermediate 25% plus in a month & long-term metric of stocks 25% plus quarter are also negative. Image
4% up/down in 1 day

The 10-day cumulative ratio (10-DCR) between stocks up & down 4% in a day is now below 0.5, & an indication of a bearish breadth thrust.

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

Overall, the market is now bearish, as the number of stocks up 25% plus in a quarter is now lesser than that down 25% plus in a quarter. The ratio between the two is the primary breadth ratio, which is now 0.29. Image
That’s all for this week. If you'd like to read this as a newsletter, find it here:

world.hey.com/nitinranjan/we…

• • •

Missing some Tweet in this thread? You can try to force a refresh
 

Keep Current with Nitin R

Nitin R Profile picture

Stay in touch and get notified when new unrolls are available from this author!

Read all threads

This Thread may be Removed Anytime!

PDF

Twitter may remove this content at anytime! Save it as PDF for later use!

Try unrolling a thread yourself!

how to unroll video
  1. Follow @ThreadReaderApp to mention us!

  2. From a Twitter thread mention us with a keyword "unroll"
@threadreaderapp unroll

Practice here first or read more on our help page!

More from @finallynitin

Apr 19
The time has finally arrived to simplify how we use the volume indicator on our charts. With a Tradingview script at the end, here is a thread🧵 on what “simple” volumes are, & how to use them: 👇
The conventional volume indicator is full of ‘noise’ in that all volume bars are given the same importance. Color & size are the two informations they provide. But this information is “across the board”, irrespective of when it’s important enough or not.
The Simple volume indicator is minimalistic, in that it strips away the conventional volume indicator from a lot of “noise”, & help narrow our focus on actionable volume bars only. It displays only 3 type of volume bars prominently: blue, green & red.
Read 7 tweets
Mar 5
One of the strongest pattern is a gap-up on the weekly chart that stays unfilled. More often than not, the price will pullback & retest the high of the gap, & give us a buying oppurtunity.

e.g EXCELINDUS - entry above high of 24 Feb candle
If this weekly gap-up coinicides with a new-high base breakout, it’s even much stronger. As per O’ Neil, gap-ups that are also base breakouts are the most powerful base breakouts.

e.g MBAPL - entry above high of 22 Feb candle
Another recent example of weekly gap-up + base breakout is UGARSUGAR. Entry above high of 22 Feb candle:
Read 5 tweets
Mar 4
#WeeklyIndexCheck CW09/2022

Market Quadrant:

⦿ Trend: Downtrend
⦿ Momentum: Negative & worsening
⦿ Breadth: Oversold
⦿ Bias: Bearish
Trend

⦿ Most major indices (including Nifty, CNX500, Midcap, Smallcap) stay in downtrend.
⦿ Auto & Realty join the red list this week
⦿ Metals, PSUbank, Power & Energy stay in uptrend under pressure.
Momentum

⦿ No index is having positive momentum
⦿ Most indices (including Nifty, CNX500, Midcap, Smallcap) are showing negative & worsening momentum
⦿ Only Energy, IT, Metal & PSE are having negative but improving momentum
Read 9 tweets
Sep 18, 2021
Market breadth measures the degree of participation & the conviction in the overall mood of the underlying index. A positive market breadth is said to happen when more stocks are advancing than are declining.

A thread on how do we interpret market breadth👇
A simple way to measure market breadth is % of stocks trading above a certain moving average. When majority are above a specific MA, market breadth is termed strong.

We use 20 & 50-day MA for short to medium-term timeframes, & 150 & 200-day MA for medium to long-term timeframes. Image
Bullish/bearish bias

We have a bullish bias when >50% of stocks are above their 150 & 200-day MA. We don't see the longer-term timeframes for oversold/overbought levels. Image
Read 11 tweets

Did Thread Reader help you today?

Support us! We are indie developers!


This site is made by just two indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member ($3/month or $30/year) and get exclusive features!

Become Premium

Don't want to be a Premium member but still want to support us?

Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal

Or Donate anonymously using crypto!

Ethereum

0xfe58350B80634f60Fa6Dc149a72b4DFbc17D341E copy

Bitcoin

3ATGMxNzCUFzxpMCHL5sWSt4DVtS8UqXpi copy

Thank you for your support!

Follow Us on Twitter!

:(