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    An Indicator To Measure Oversold Behavior of - Used To Measure Degree of Pessimism - Deeper The Pessimism, Sharper The Recovery

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    Stuart Brood
    The CMB is an indicator used to measure market sentiment and the degree of pessimism in the market. Generally, a CMB reading below -6000 indicates an oversold sentiment, while a reading below -7000 suggests an extremely oversold sentiment. Recent data shows that when the CMB reaches these levels, the Nifty index tends to recover 3-7% over the following 7 trading sessions, suggesting the current oversold reading could lead to a 3% recovery in the Nifty to around 10,000 points.

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    An Indicator To Measure Oversold Behavior of - Used To Measure Degree of Pessimism - Deeper The Pessimism, Sharper The Recovery

    Uploaded by

    Stuart Brood
    23 views5 pages
    The CMB is an indicator used to measure market sentiment and the degree of pessimism in the market. Generally, a CMB reading below -6000 indicates an oversold sentiment, while a reading below -7000 suggests an extremely oversold sentiment. Recent data shows that when the CMB reaches these levels, the Nifty index tends to recover 3-7% over the following 7 trading sessions, suggesting the current oversold reading could lead to a 3% recovery in the Nifty to around 10,000 points.

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    cmb

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    The CMB is an indicator used to measure market sentiment and the degree of pessimism in the market. Generally, a CMB reading below -6000 indicates an oversold sentiment, while a reading below -7000 suggests an extremely oversold sentiment. Recent data shows that when the CMB reaches these levels, the Nifty index tends to recover 3-7% over the following 7 trading sessions, suggesting the current oversold reading could lead to a 3% recovery in the Nifty to around 10,000 points.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    23 views5 pages

    An Indicator To Measure Oversold Behavior of - Used To Measure Degree of Pessimism - Deeper The Pessimism, Sharper The Recovery

    Uploaded by

    Stuart Brood
    The CMB is an indicator used to measure market sentiment and the degree of pessimism in the market. Generally, a CMB reading below -6000 indicates an oversold sentiment, while a reading below -7000 suggests an extremely oversold sentiment. Recent data shows that when the CMB reaches these levels, the Nifty index tends to recover 3-7% over the following 7 trading sessions, suggesting the current oversold reading could lead to a 3% recovery in the Nifty to around 10,000 points.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 5

    CMB

    • An indicator to measure Oversold behavior of


    Market Sentiment
    • Used to measure degree of pessimism
    • Deeper the pessimism, Sharper the recovery
    Generally,
    • CMB below -6000, is an indication that the
    sentiment is oversold
    • Below -7000 the sentiment is extremely
    oversold
    Recent occurrences
    Date CMB Nifty Nifty after 7 %recovery
    days
    5/24/2017 -6559 9360 9675 3%

    11/21/2016 -7470 7929 8200 3%

    2/29/2016 -7619 6987 7510 7%

    2/11/2016 -6414 6976 7234 4%

    9/27/2015 -6125 7559 7981 6%

    3/27/2015 -6802 8341 8780 5%


    Nifty Chart : from 2015 till date.
    Recovery likely ?
    Friday closing : 08/11/2017
    • CMB : -6560
    • Nifty : 9710
    • A 3% recovery could lead the index to 10000
    again in 7 trading sessions

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