/india-market-breadth

name: india-market-breadth
description: >
  Analyze Indian market breadth health using advance/decline data, stocks above moving averages,
  new highs/lows, and sector participation. Use when assessing rally quality, market participation
  width, or equity exposure levels for NSE/BSE.

India Market Breadth Analyzer

Purpose

Market breadth measures how broadly a rally or decline is distributed across the market. A healthy market has broad participation — many stocks and sectors moving in the same direction. A narrow market, where only a few large-cap stocks are driving the index, is fragile and prone to reversal.

This skill provides a systematic framework to assess NSE/BSE breadth health, score it on a 0-100 composite scale, and translate it into actionable equity exposure recommendations.

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Data Sources

Primary Sources

| Data Point | Source | Method | |------------|--------|--------| | Advance/Decline counts | NSE website / Web search | `WebSearch` for "NSE advance decline data today" | | Stocks above 200 DMA | Market screeners / Web search | `WebSearch` for "stocks above 200 DMA NSE" | | Stocks above 50 DMA | Market screeners / Web search | `WebSearch` for "stocks above 50 DMA NSE" | | New 52-week highs | Groww MCP | `fetch_market_movers_and_trending_stocks_funds` with `YEARLY_HIGH` filter | | New 52-week lows | Groww MCP | `fetch_market_movers_and_trending_stocks_funds` with `YEARLY_LOW` filter | | Sector performance | Groww MCP | `get_ltp` for sector indices (Nifty IT, Bank Nifty, Nifty Pharma, etc.) | | Nifty 50 level | Groww MCP | `get_ltp` for NIFTY | | Top gainers/losers | Groww MCP | `fetch_market_movers_and_trending_stocks_funds` with `TOP_GAINERS` / `TOP_LOSERS` |

Broker MCP Tools Used

Use whichever broker MCP is connected (Groww or Zerodha Kite):

**Groww MCP (if connected):** 1. **`fetch_market_movers_and_trending_stocks_funds`** — Core tool for yearly highs/lows counts, top gainers/losers, volume data 2. **`get_ltp`** — Get live prices for Nifty, Bank Nifty, sector indices 3. **`fetch_historical_candle_data`** — Historical data for trend analysis 4. **`get_historical_technical_indicators`** — Calculate moving averages for breadth assessment 5. **`fetch_technical_screener`** — Screen for stocks by technical criteria (RSI, MACD, etc.) 6. **`fetch_fundamentals_screener`** — Natural language screening for market-cap based analysis

**Zerodha Kite MCP (if connected):** 1. **`get_ltp`** — Live prices for Nifty, Bank Nifty, sector indices 2. **`get_quotes`** — Real-time quotes with market depth 3. **`get_ohlc`** — OHLC data for indices and stocks 4. **`get_historical_data`** — Historical candle data for trend analysis 5. **`search_instruments`** — Search for instruments by name

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Workflow

Step 1: Fetch NSE Advance/Decline Data

Use web search to get NSE advance/decline data:

WebSearch: "NSE advance decline ratio today"
WebSearch: "NSE market breadth today advances declines"

Key data points needed:

• Number of advances (stocks that closed higher)
• Number of declines (stocks that closed lower)
• Number of unchanged
• Total traded stocks

Step 2: Calculate Breadth Indicators

A/D Ratio

A/D Ratio = Number of Advances / Number of Declines

Interpretation:
  > 2.0:  Strong breadth (broad rally)
  1.5-2.0: Healthy breadth
  1.0-1.5: Neutral
  0.7-1.0: Weak breadth
  < 0.7:  Very weak (broad selling)

A/D Line (Cumulative)

A/D Line = Previous A/D Line + (Advances - Declines)

Rising A/D Line + Rising Nifty = Confirmed uptrend
Falling A/D Line + Rising Nifty = DIVERGENCE (warning)
Rising A/D Line + Falling Nifty = Accumulation (bullish)
Falling A/D Line + Falling Nifty = Confirmed downtrend

McClellan Oscillator Concept

A/D Difference = Advances - Declines
19-day EMA of A/D Difference (fast)
39-day EMA of A/D Difference (slow)
McClellan Oscillator = 19-day EMA - 39-day EMA

> 0:  Bullish breadth momentum
< 0:  Bearish breadth momentum
> +50: Overbought breadth
< -50: Oversold breadth

Step 3: Assess % of Stocks Above 200 DMA and 50 DMA

Use web search or screener tools:

WebSearch: "percentage of NSE stocks above 200 day moving average"

Or use Groww MCP technical screener to estimate:

fetch_technical_screener with various SMA/EMA filters

Key Thresholds

| Metric | Bullish | Neutral | Bearish | |--------|---------|---------|---------| | % above 200 DMA | > 60% | 40-60% | < 40% | | % above 50 DMA | > 55% | 35-55% | < 35% | | % above 20 DMA | > 50% | 30-50% | < 30% |

Step 4: Count New 52-Week Highs vs Lows (via Groww MCP)

Use Groww MCP tools:

# Fetch stocks hitting yearly highs
fetch_market_movers_and_trending_stocks_funds(
    discovery_filter_types=["YEARLY_HIGH"],
    size=20
)

# Fetch stocks hitting yearly lows
fetch_market_movers_and_trending_stocks_funds(
    discovery_filter_types=["YEARLY_LOW"],
    size=20
)

Interpretation

| Highs:Lows Ratio | Signal | |-------------------|--------| | > 5:1 | Strong bullish breadth | | 2:1 to 5:1 | Healthy bullish breadth | | 1:1 to 2:1 | Neutral / transitioning | | 0.5:1 to 1:1 | Bearish breadth | | < 0.5:1 | Strong bearish breadth |

Step 5: Score Breadth Health (0-100 Composite)

The composite score is calculated from 5 components:

| # | Component | Weight | Max Points | Source | |---|-----------|--------|------------|--------| | 1 | Advance/Decline Ratio | 25% | 25 | NSE A/D data | | 2 | Stocks Above 200 DMA | 25% | 25 | Screener data | | 3 | New Highs vs Lows | 20% | 20 | Groww MCP YEARLY_HIGH/LOW | | 4 | Sector Participation | 15% | 15 | Sector index performance | | 5 | Nifty Divergence | 15% | 15 | Nifty vs breadth comparison |

Component 1: Advance/Decline Ratio Score (0-25)

| A/D Ratio | Score | |-----------|-------| | > 3.0 | 25 | | 2.5 - 3.0 | 22-25 | | 2.0 - 2.5 | 19-22 | | 1.5 - 2.0 | 15-19 | | 1.2 - 1.5 | 12-15 | | 1.0 - 1.2 | 8-12 | | 0.7 - 1.0 | 4-8 | | 0.5 - 0.7 | 2-4 | | <