Nifty 50 index gains over 1,200 points recently
The Nifty 50 index is showing positive signs, according to Laurence Balanco, a chartist with CLSA. After reaching a low of 21,964 points on March 4, it has climbed more than 1,200 points and has surpassed the 23,000 mark. Balanco noted that the index closed above its 50-Day Moving Average during Thursday's trading session. This movement is significant because it triggered a "breadth buy" signal, the first of its kind since 2023. A breadth thrust signal indicates that at least 55% of Nifty 50 stocks are at or above their four-week highs. Historically, such signals have been positive for the index. Balanco revealed that there have been 39 breadth thrust signals since 2002. Following these signals, the Nifty 50 typically sees average gains of 3.8% over 30 days, 7.8% over 90 days, and 13.4% over 250 days. The success rates for these gains have been strong in the past. The 30-day return has been successful 76.3% of the time, while the 90 and 250-day periods succeeded 73.6% and 81.5% of the time, respectively. Balanco also suggested investors consider buying shares of ICICI Bank, which is close to its 52-week high of ₹1,362. The bank's stock has risen 7% in the past month, recovering from earlier losses and posting positive returns for the year so far.