india-market-breadth

NSE market breadth analysis quantifies internal market health into a 0-100 composite score using advance/decline ratios, 200 DMA participation, new highs/lows, sector participation, and Nifty divergence to generate actionable equity exposure recommendations.

The percentage of stocks above 200 DMA indicates underlying market health by measuring long-term bullish participation, serving as one of five components in a composite breadth score that maps to regime classifications like Strong, Healthy, Neutral, or Weak.

Generate a structured breadth report by computing the 0-100 composite score and populating the breadth report template, which outputs regime classifications, risk recommendations, and detailed divergence analysis suitable for daily, weekly, or event-driven reviews.

Nifty divergence assesses tactical allocation risk by comparing index price trends against broader market participation, forming a key component of the composite breadth score that dictates whether to increase or decrease equity exposure.

Quantify sector participation by measuring the breadth of sectors moving in alignment with the broader trend, which feeds into the 0-100 composite breadth score to produce regime classifications and specific equity-exposure guidance.

The composite breadth score relies on historical thresholds and five specific components including A/D ratio and Nifty divergence, making it a structured framework for risk management rather than a predictive model for individual stock selection.