nooreshtech.co.in/2018/05/nifty-… Nifty Calculator–Market Kya Lagta Hai ? Guess on your Own !!
Interesting Observations -
Top 5 names are 35.81% of the index
Top 10 is 55% of the index
Top 20 is 73.15% of the index
HDFC Bank and HDFC Limited are 16.88% of the Index !!
Only one #PSU Bank left in the index – SBI has a weight of only 2.16%
Banking and Finance now constitute 36% of the Index
Private Banks constitute 23.53% of the Index.
Metals and Mining contribute only 3.21% ( Vedanta, Hindalco, Tata Steel)
FMCG stocks ITC and HUL command 8.23% of the Index.
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Multi-Year Range Breakouts in Nifty50 Stocks but Nifty50 Making Lower Tops –What to Do ?
Apart from that
1) Global Indices – US and Europe near all time highs but India continues to struggle and making lower tops.
2) Stocks in Same Sector – One at all time high the other one at 30% drawdown.
3) What to trust the Breakout Moves or Breakdown Moves ?
This creates a dilemma for a Trader – To trust the Breakout/Breakdown or Not ?
Now lets c the Charts
The Struggling Nifty50
Positive divergences on new lows.
Still in lower tops.
Last major swing highs at 24200.
Swing lows at 22800.
Every big positive candle does not see any follow up action over next 1-3 sessions. Wait for this to change.
#Retail Inflows continue to be strong but Sebi categorization of Stocks > 33k cr Mkt cap being considered Midcap has led to over-ownership and overvaluation in the Top Midcap & Smallcap ( > 20k cr )
Data from Monarch AIF Note.
1) Price CAGR >> Earnings CAGR
Nifty50 and Nifty500 have moved inline with earnings cagr.
NiftyMidcap 100 has seen max re-rating. A price cagr of 27.3% against 11.7% earnings.
2) Concentrated Flows
Mid + Small + Thematic = 55-60% share of MF pure equity net inflows in CY23 and CY24