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Analysing the BSE Sensex Trends.
Indian Stock Market: Determining the market trend and stability by
analysis of the BSE Sensex Stock Index
The BSE Sensex is the index of shares listed on the Mumbai Stock
Exchange (BSE) and learning how to recognise the trends in the index can
yield valuable information about when to buy, when to hold and when to
sell, the three main pieces of information needed by every Indian stock
market investor.
The performance and trending of the BSE Sensex index of the
Mumbai Stock Exchange (Bombay
Stock Exchange) is uploaded every day to
www.sharesdaily.in where
you will see a number of metrics, the first being the percentage rate of
change over the past 1, 5, 10, 60 and 250 trading days.
One often sees the words "short term", "medium term" and "long term"
used in the financial media without any actual
definitions. The sharesdaily.in analysis metric defines them thus:
Short term is the BSE Sensex trend over the past ten trading days.
Medium term is the BSE Sensex trend over the past sixty trading days.
Long term is the BSE Sensex trend over the past two hundred and fifty
trading days.
From this you can see that it is possible to have the
BSE Sensex rising in
the short term but falling in the medium term, etc.
When all three terms are showing positive numbers, the market trend is
very strong in that direction, be it up or down.
In addition to the previous trends, the percentage rate of change of the
previous trading day is displayed plus the
movement over the past week of five trading days.
The other valuable metric is the Volatility Barometer, this measures the
trading range over the past ten trading days of the BSE Sensex. If the volatility is
falling then the market is more stable, if it is rising then the market
is becoming more unstable. An actual numerical readout will be installed
in the future.
The ideal condition for investors is to have the short, medium and long
term BSE Sensex trends in positive numbers and to have the volatility decreasing.
Here you have both gain and stability. This applies to the market index
and not to every individual stock
Always remember that this all can be overruled by sudden
unpredictable negative events so have your exit strategy and stop losses
in place. More about the BSE Sensex in future articles.
INDIAN SHARES
BOMBAY STOCK EXCHANGE
BSE INDIA
NSE INDIA
BSE SENSEX ANALYSIS
MUMBAI STOCK EXCHANGE
NATIONAL STOCK EXCHANGE
INDIAN STOCK MARKET |
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