Heat Map for Nifty Stocks

We had defined in our earlier post relating to automatic trend analysis and picking Nifty stocks that scrips

• above 200 Day Moving Average (MA) show long term bullishness. Usually institutional investors stay invested and make entry when the price crosses above from below.
• below 50 MA and above 200 MA (50 MA price being greater than 200 MA price) show bullish bias but one may watch, wait and hold. Break outs above will be good entry point.
• below 200 MA but Above 50 MA (50 MA price being less than 200 MA price) show bearish bias but it may test the 200 MA line and may probably get resisted there. You may look opportunities for getting out of a stock at all rises.
• above 50 MA but below 200 MA show longer term bearishness and everybody avoids these stocks till they break out to upper zone.

We can segregate the stocks and differentiate them on the basis of the relative position of closing price with respect to 50 MA and 200 MA price lines. We can easily prepare Heat Map of the stocks using colored background of rows in a spreadsheet.

The other two combinations are rare but possible requiring close attention viz stocks

• below 50 and 200 MA but 50 MA price is greater than 200 MA price indicating there has been sudden fall of closing prices below 200 MA price recently.
• above 50 and 200 MA but 50 MA price is less than 200 MA price indicating there has been a fast break out on the upper side recently.

These are grey area stocks which are waiting for cross of 50 MA against 200 MA which we term as Golden Cross. We can expect a cross or support / resistance at this point. We shall indicate whenever price crosses 50 MA mark with 50+ , 50-, 200+, 200-, G+, G- (Golden Cross) noting as remark.

We shall prepare heat map with the following row colouration

sea-green light-sky-blue light-pink orange slate-gray moccasin

50+,200+

50-200+

200-50+

200-50-

200+

200-

Just by seeing the color we can know instantly the trend the stock follows. Spreadsheet showing above heat map coloration for easily identifying trend is available here.

Similary heat map for Junior Nifty Stocks can be accessed here.

Nath SM