Technical Analysis of Indian Equities by Nooresh

Nifty Calculator July 2017 and Interesting Observations

Nifty Calculator

NIFTY CALCULATOR JULY 2017   ( Click to Download )

Nifty Calculator - Weightages as per 30th June 2018. 

Interesting Observations

· HDFC Bank and HDFC Limited are 17.53% of the Index !!

· Top 5 names are 36.86% of the index

· Top 10 is 56.46% of the index

· Top 20 is 74.73% of the index

· Only one #PSU Bank left in the index – SBI has a weight of only 2.30%

· Banking and Finance now constitute 37.65% of the Index

· Private Banks constitute 24.57% of the Index.

· Metals and Mining contribute only 2.85 % ( Vedanta, Hindalco,Tata Steel)

· FMCG stocks ITC and HUL command 7.45% of the Index.

Thoughts to Ponder on

  • HDFC twins now are 17.5% of the index. The trend of the market now depends a lot on these two names.
  • Financial Services are 37% + of the index and generally everyone values it at Price to Book and other parameters and not P-E . Reduction of Low P-E PSUs to majorly Private Banks and Private Financials that generally quote at high P-E, does it imply a higher base P-E for Nifty for coming years ?
  • Once the Insurance companies are done with their capital raising we may expect a HDFC Life or another to also become part of the index in coming years. Maybe in future 40% of the Index would be Banking and Financials. Does such an index reflect the Economy ?



Nifty Kya Lagta hai ?

Every technical analyst/fundmental analyst/ strategist and even the paanwala talks about Nifty/Sensex has an answer to the question – Nifty kya lagta hai ?

9 out of 10 people will give you an answer.

But if you ask them tell us top 5-10 stocks which will lead the market in the direction they say only a couple of them will have the answers.

You can find your own possible targets by playing around with the Nifty calculator which may be a better estimate.

What is Nifty Calculator ?

-> As per the weightages given by NSE for Nifty stocks we have created the Nifty Calculator.

-> Change the expected price and the expected Nifty will change accordingly

-> Create 3 different sheets for yourself–

Pessimistic ( where you put the worst possible prices you think )

Optimistic ( the best prices possible)

Neutral/Rational/Technical / Fundamental ( prices on any reasoning )

Please Note as weightages change every day by small margin this will not give an accurate estimate but will be approximate.

    Article by Nooresh Merani

    Nooresh has written 2738 articles.

    You can follow Nooresh Tech on Facebook and Twitter here.

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