Where are the SIGNALS?

One might wonder, “Ok long 30 is fine. But where are the signals for the SENSEX 30?” Today we review the first 15 components of the SENSEX 30 components. These first 15 are the lowest in rankings among the SENSEX 30 stocks. And guess what? All the Sensex components are still above 50 per centile ranking for a quarter. What does this mean? It means that SENSEX according to the most basic measure is still not inexpensive. The stocks in the SENSEX 30 are still not a compelling buy.
To dig in further we looked at the two most basic filters that we use to generate signals. One; the Jiseki weekly > Jiseki monthly. Second; 5 week price average > 20 week price average. Whenever we get a confirmation from both signals we BUY and vice versa. a, b, c and d are the only ones where both signals are positive. And all these four buys have delivered over the last 3 months.
Even the ones with both signals negative like A, B, C, have delivered a clear negative mandate with losses ranging from -10 to -30 percent over the last 3 months.
In conclusion, none of the SENSEX 30 have made it to the LONG 30 list, but if you are a blue chip investor, you have to look at buying the stocks which are positive for both cycles and price. We will review the other 15 tomorrow.


Coverage India: CNX100, BSE500 traded stocks and Indian Indices.

Michesan Anna-Maria, discovered her interest of markets immediately after completing her graduate studies in Economics. She followed it up with post graduate studies in corporate finance. A host of research work in behavioral finance, option strategies and quantifying market sentiment followed. Anna covers Indian equity and combines Elliott, Time Fractals and Time Analytics to deliver accuracy across time frames.