The broader trend of cash stocks is seen by the percentage number of stocks which are above important support levels. Currently there are 37% of stocks which are above support and 63% stocks are below support. When stocks above support are below 50% we consider cash stocks to be in downtrend and above 50% we consider cash stocks to be in uptrend. Just for your information the cash stocks percentage has been below 50% for majority of the time in last 5 months. This percentage when comes below 10%, we consider the markets as quite oversold and when it is above 90% as quite overbought.
I am quite sure many of us must be curious to see what happens when stocks above support come as more than 50% because that is when one needs to buy deliveries.
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Thanks.
neera@crnindia.com
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