Nifty Market Breadth Indicator – 52 Week High Index

Market breadth indicator of Nifty - 52 Week High Index

52 Week High Index (52WH index) of Nifty is a market breadth indicator that calculates the percentage of stocks down -20% or more from their 52 week highs.  

The 52 week high index is calculated by counting the number of stocks down -20% or more from their 52 week highs divided by 500, the total number of stocks used for this index. Here we have used Nifty 500 stock universe for this calculation.

The data plotted is a 10-day simple moving average of 52WH index for a smoother curve.

Nifty 500 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 Nifty 500 index, we discarded the illiquid and junk penny stocks from the market breadth indicator giving us a clean reading of stock market direction.

52 Week High Index Formula

Percent Stocks Down -20% or more = ((Number of Stocks Down -20% or more from 52 Week High) / 500)) x 100 

%52 Week High Index = 10-day simple moving average of Percent Stocks Down -20% or more from their 52 Week High

The chart will be updated every day 7:30 PM IST

Posted in Nifty, Technical Analysis.

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