HiLo Index – Market Breadth Indicator of Nifty

Market breadth indicator of Nifty - HiLo Index

Introduction to HiLo Index

HiLoIndex (short form of High-Low Index) of Nifty is a market breadth indicator that calculates record high percentage of stocks in Nifty500 index.Record High Percent of stocks is calculated as Number of stocks at 52 week highs divided by Number of stocks at 52 week highs plus Number of stocks at 52 week lows. HiLo index is 10-day simple moving average of record high percentage of stocks in Nifty500.

Nifty500 stock universe is chosen to plot the indicator because it represents 94% of the free float market capitalization on NSE. It comprises of 100 Large-cap stocks, 150 mid-cap stocks & 250 small-cap stocks. By choosing Nifty500 index, we discarded the operator driven, illiquid and junk penny stocks from the market breadth indicator giving us a clean reading of stock market direction.

Hi-Lo Index Formula

Record High Percent Stocks = (New 52 Week Highs / (New 52 Week Highs + New 52 Week Lows)) x 100 

HiLo Index = 10-day simple moving average of Record High Percent Stocks

The chart will be updated every day 06:30PM IST

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