Though Nifty is hovering around record breaking level , 71% (1329 of 1849 stocks listed at NSE) of the stocks are below 200 DMA; 59% of NSE 1849 stocks (1096 out of 1849) are trading below their equivalent level during October 2018. It clear that only a few stocks are pulling Nifty and really is not giving a true picture of the Share market. Neither it is showing true state of economy. If we look just at the pilled up inventory of the auto sector picture will be clearer. Economic Times newspaper reports that India’s automobile manufacturers inventory currently stands at 500,000 passenger vehicles (PVs) and three million two-wheelers. This indeed is not a rosy picture. It is expected that full year budget will try to kick start the economy. In the mean time more broad base indicator with appropriate weight to the sectors which actually pulls GDP is what one should look for.
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