BANK NIFTY COMPONENT STRENGTH SCORE

INTRODUCTION

I am experimenting and developing a Component Strength Score based on the study of the underlying constituents of the Index itself. I have started with Bank Nifty ... Here is a WIP version ... The graph has three data points ... the movement of BN itself (absolute points), then there is a Component strength (CSS) raw score overlaid with an EMA of the CSS. A score above 50 seems to indicate bullishness and a CSS crossing over the EMA indicates a change in sentiment. As per data, BN getting into a neutral (from bearish) with a positive bias.

DATA 24-OCT-17


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The CSS crossed 50 today supported by PSU Banks in the index. The CSS-EMA cross over also took place today. The EMA is 48.63. Another couple of bullish days could see the bullish momentum return to BN. Currently it is still sideways as per the indicators.


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This blog is for educational and awareness purpose only. The views are intended for discussion and exchange of views rather than an expert opinion. This is not an recommendation to buy or sell or invest in the stock market and derivatives market. Kindly exercise caution and perform your own due diligence before investing in the market, after fully and clearly understanding the risks involved.

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