MarketQuadrant CW52/2023
Almost all the broad indices have closed above the high of the 20th December shakeout day. What could go wrong here?
⦿ Trend: Confirmed Uptrend
⦿ Momentum: Positive & improving
⦿ Breadth: Strong but nearing overbought
⦿ Bias: Positive
⦿ Swing: Confirmed Upswing
Trend → Confirmed Uptrend
⦿ As 4 out of 5 broad indices have moved up, we shift the current status to a confirmed uptrend. Only Microcap 250 index is in an uptrend under pressure.
⦿ All sectoral/thematic indices are also in a confirmed uptrend.
⦿ Not even a single index is in downtrend.
Momentum → Positive & improving
⦿ Most of the broad market indices & majority of the sectoral indices have positive & improving momentum.
⦿ Microcap & Realty are the only indices with positive but worsening momentum.
⦿ Media is the only index with negative & worsening momentum.
Swing → Confirmed Upswing
⦿ Majority of indices are in a confirmed upswing. Media is in a confirmed downswing.
⦿ Both Nifty & Smallcap 100 are in a confirmed upswing, Swing Confidence is 100, which means that the portfolio can take the maximum permissible open risk.
⦿ Swing Temperature is warm, which means that new swing positions should be avoided or be taken with smaller sizes, & trailing stoplosses be tightened.
Breadth → Strong but nearing overbought
⦿ Breadth as per moving averages: As % of stocks above both 10-day & 20-day MA stay above 50, so the breadth is even stronger than last week. With the % of stocks above 50-day MA approaches 80, we’ll go nearer to an overbought state. The % of stocks above 200-day MA is in the sustainably bullish 80+ range.
⦿ Net breadth as per 4% advance & decline is positive.
⦿ Market breadth volume is now hovering near 0.5.
Bias → Positive
Currently, the bias is positive.
⦿ Majority of indices have stayed above the 50-day MA for past 3 consecutive days.
⦿ Net New Highs have stayed positive for past 3 consecutive days.
⦿ On lower timeframes, the 65-day & 20-day NNH are positive for past 3 consecutive days.
⦿ While the indices are moving up, the 52-week NNH are lagging behind.
And that’s all for this week!
Please explain more on individual items and please also write on putting all important indicators on trading view so as to do develop holistic view apart from primary and secondary breadth indicators.