Nifty Calculator Oct 2022 – A New Bull Market or Reversal on Cards ?

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For all the super bullish and bearish readers.

Please send me a guesstimate sheet which takes it to 16000/16500 and 19500/20000

This is a good time for exercise. Can mail me on nooreshtech@analyseindia.com

Nifty Calculator Oct 2022

Nifty-Calculator-Oct 2022 www.nooreshtech.co.in

Do check this video on Nifty Calculator – https://www.youtube.com/watch?v=QbmhiLXYx2k

What is a Nifty Calculator?

-> As per the weightage 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. Default 10% down)

Optimistic (the best prices possible. Default 10% up)

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

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

How to Guess?

Everyone has a view on Nifty based on Macro, PE, Valuations, Technicals, Waves, etc. Try to grill it down to the constituents. It should be a reflection of your actual guesstimate.
Just estimating wild scenarios on the top 20 stocks is enough given the 75-80% weight.
Start with changing the default fall to 5-10-15-20-40-80 or rise to 5-10-20-40-80.
Then change stocks that you think may not do the default move.
Also do remember there is not a direct correlation between the economy with the Nifty.

Things to Note

One of the reasons we keep posting this is to make an actual unbiased guess every month/quarter.
There have been numerous warnings as to how markets are overheated. Understanding the constituents allows you to realize how Nifty is not supposed to reflect the Economy.
Nifty is now at the middle from a recent low of 16747 and 18096 the highs.
Putting in the numbers looks like we are going to stay sideways for some time. What’s your call?

Interesting Observations

Top 5 stocks – Reliance, HDFC Bank, Infosys, ICICI Bank, HDFC = 39.91% vs 39.37% of Nifty in Sep 2022
Top 10 stocks constitute 57.44% vs 56.96% of the Nifty in Sep 2022
Top 20 stocks constitute 77.18% vs 76.65% of the Nifty in Sep 2022
Reliance is the top weight at 11.03%, followed by HDFC Bank at 8.26%. 19.29 % of the Index.
Reliance + HDFC Twins= 24.91% of Nifty (Hope you get why Nifty does not depict GDP. 25% of India’s GDP is not equal to Reliance +HDFC)
HDFC Twins together constitute 13.88% of Nifty (reducing now for some time)
Bottom 26 stocks have less than 1% weight and total weight at 18.36%

Sectoral Observations

Some changes in classification :

Consumer goods sector is now divided into Consumer Durables and FMCG.
‘Oil and Gas’ now renamed as ‘Oil, Gas and consumable fuels’. Coal India now classified under Oil, Gas and Consumable fuels. Earlier it was classified under metals. IOC out from index which was classified under Oil and Gas
‘Automobile’ Sector renamed as ‘Automobile and Auto Components’.
‘Metals’ renamed as ‘Metals and Mining’. Coal India no longer classified under this sector.
‘Cement and Cement Products’ sector renamed as ‘Construction Material’.
‘Pharma’ sector renamed as ‘Healthcare’ and Apollo hospital is included in the index under this sector.
‘Fertilizers and Pesticides’ sector renamed as ‘Chemicals’.

Weightage Changes

Banks and Financials are now increasing from recent low of 35.19% in March 2022 to 37.05% now. It has seen a bottom of 33.16 in July 2020.
Power increased to 2.01% from 1.81% (March 2022).
Media at 0.
Oil and Gas from 16.18% in July 2020 to 12.70%. ‘Oil and Gas’ is now renamed as ‘Oil, Gas and Consumable fuels’. Coal India is now classified under Oil, Gas, and Consumable fuels. Earlier it was classified under Metals. IOC out from the index which was classified under Oil and Gas.
Metals from 2.77% in July 2022 to 3.72% . Coal India is now classified under ‘Oil, Gas and Consumable Fuels’. Earlier it was under Metals.
IT weights increased from 14.48% in April 2020 to 19.09% in Dec 2021. Its weight reduced from 19.09% in December 2021 to 14.10% in Oct 2022. IT Bottom weight in Sep 2022 at 13.82%
Automobile at 5.84%. Stable
Consumer Durables weight increased to 3.21% from 2.93% (June 2022).
Healthcare at 4.01%.