Our ace chartist @bbrijesh posts the Index chart in his video. Let us understand on how he creates this index in Tradingview to analyze the charts. #Index #TechnicalAnalysis #charting
There are 2 ways to create an index - Equal Weighted Index #EWI and Market Cap Index #MCI. 1. EWI is used when maximum stocks are from large and midcap. 2. MCI is used when max stocks are midcap and smallcap.
To plot EWI, the stock price is just added and it is plotted on the chart. For Eg. I have taken 10 stocks - #Reliance #LT #TCS #Infy #BajFin #Dixon #DivisLab #Titan #RECLtd #BharatForg Check #chart attached 
To plot MCI: 1. Write the Market Cap in excel and sum the total market cap. 2. Divide Marketcap of each stock with Total MarketCap and assign weights. 3. Multiply the stock price with the weights. (Check Excel Table)
On #TradingView, Select the stock and Multiple by it weights to plot the chart. The quotes for current eg : NSE:RELIANCE*0.363+NSE:TCS*0.268+NSE:INFY*0.138+NSE:BAJFINANCE*0.079+NSE:LT*0.066+NSE:TITAN*0.047+NSE:DIVISLAB*0.019+NSE:BHARATFORG*0.009+NSE:RECLTD*0.007+NSE:DIXON*0.005
You can look at the difference in the chart but the major trend will drive by the trend of top 3 in the MCI.
Investors can also plot the chart for their portfolio using #MCI on their portfolio and track the trend. Also you can add chart of Nifty/Sensex/Nifty500 to evaluate the outperformance/underperformance of their portfolio. Attached our portfolio comparison with #Nifty50.
To keep track of what’s happening on charts, you can follow Brijesh on his Telegram channel t.me/FastProfitsRep… and watch his videos on eqtm.in/m6PLi
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