[Chart Of The Week] Breadth Expansion Continues

JC Parets
August 20, 2020

One of the reasons we've remained so bullish on Equities as an asset class is because of the continued expansion in the number of stocks participating to the upside.

In this week's "Chart Of The Week," we want to highlight a simple metric that can be used to identify the breath of the Indian stock market.

Here's the percentage of stocks in the Nifty 500 that are above their 200-day moving average. If a stock is above its 200-day moving average, it's most likely not in a downtrend and so this measure provides a quick look at what's happening with the "market of stocks" that comprise the stock market index we're tracking.

Click on chart to enlarge view. 

As you can see, this measure broke above our 15% threshold in April and has been trending higher ever since, signaling a broadening of participation amongst Indian stocks.

This expansion of breadth has created opportunities for us to profit as money flows into new sectors like Nifty Media, Nifty Realty, Nifty Energy, and Nifty Metals, amongst others...and there's little sign of it meaningfully reversing anytime soon.

We'll be discussing this and the other ways we're profiting in the current environment in tonight's Members-Only Conference Call, at 7PM IST.

We've got 150+ slides to go through and are very excited to share our thoughts with you. See you there!

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