Automatic Trend Picking for Nifty Stocks

Traditionally stock analysis sites start with Pivot point analysis. That is usually for floor traders and day traders. As there are numerous sites provide data on that we can do something different. An stock price update tool is provided with a very simple analysis.


Initially we confine our analysis to Nifty 50 stocks of current date.

• We shall pull up the current price levels of stocks in a spreadsheet and calculate the Pivot price which is average of current Open, High, Low, Last Price. We shall compare the last price with today's pivot, levels of previous close, Moving Average price of 50 and 200 and 50 MA is greater than 200 MA as well. If current price above all these levels, we shall provide "B+" grade. 200 MA is genereally and almost religiously followed by traders and institutions as well for gauging a long term trend and 50 MA as medium term trend. (In fact a cross of 50 MA over 200 is called Golden Cross")
  
• Conversely if the current price level is less than 200 day MA, 50 day MA, previous close, today's pivot price and 50 day MA is less than 200 day MA, "S+" grade can be provided.
• If the price is just about 50 and 200 MA, it can be graded "B"
• if the price is below 50 and 200 MA, it can be graded "S"
• Suitable formating should be done for the column for locating the stocks easily.
• We may consider those stocks in between 50 and 200 as grey zone area or hold till a correct picture emerges
• Stock charts can be viewed using the link provided at the end of each row.

Spreadsheet showing such automatic trend analysis is given here.

Similar exercise has been done for stocks of Nifty Junior index and the respective spreadsheet is published here.

It is working fantastically. Only thing is we have to ensure that the data is current. We can just cross check with that NSE site.

Nath SM