15 January 2011

Breadth Indicator : Week Ending 14 Jan 2011

I don't think we needed this chart to tell how bad things are, as per breadth of market. The peak has shifted from -80% which was already bad to worse of -90% and we have a whole lot of stocks near their lows (-100%), over 30 out of 200 odd in F&O segment which surely a sign of total collapse.

Only 22 stocks are trading above their averages and 166 are below! Things are very oversold, we can expect technical bounce from here, but the theme remains sell on rallies. The selling has been consistent and in discriminant, so beware of what you buy !

No need to point out where weakness lies, stocks showing strength are PRAJIND, MPHASIS, ISPATIND, GRASIM and CAIRN.


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