Advance & Decline in reference to any of the indices depicts the stocks that have shown positive movement and stocks that have shown negative movement. Positive movements of a stock are termed as advances whereas the negative movements of the stock are termed as declines. Ratio of advance and declines for any index is known as advance decline ratio. Net advance or decline for any index is derived by subtracting the lower attribute from the higher one.
Advance decline ratio greater than 1 denotes more stocks in the index have shown positive movement whereas advance decline ratio less than 1 implies more stocks had negative movement in the index.
If the net advances is positive then it implies more no of stocks in any index have shown positive movement whereas if the net declines is positive then it implies that more stocks have shown negative movements.Advance Decline Ratio
Advance decline ratio is used in fundamental as well as technical research as a market breadth indicator.
A good ratio indicates positive market sentiments for the entire sector (constituting index) and thus we can invest in the sector speculating a good growth further as well. Once the sector selected we can choose the stock on the basis of the previous advances of the indices.
It is regarded as a good technical indicator to track the market sentiments. The frequency to measure the ratio may vary from few minutes, days, weekly or longer then it.
Registered Office Address: Motilal Oswal Tower, Rahimtullah Sayani Road, Opposite Parel ST Depot, Prabhadevi, Mumbai-400025; Tel No.: 022-3980 4263;Website www.motilaloswal.com. Correspondence Adds: Palm Spring Centre, 2nd Floor, Palm Court Complex, New Link Road, Malad (West), Mumbai- 400 064. Tel No: 022 3080 1000. Registration Nos.: Motilal Oswal Securities Ltd. (MOSL): INZ000158836 (BSE/NSE/MSE);CDSL: IN-DP-16-2015; NSDL: IN-DP-NSDL-152-2000; Research Analyst: INH000000412. AMFI: ARN 17397; Investment Adviser: INA000007100.Motilal Oswal Asset Management Company Ltd. (MOAMC): PMS (Registration No.: INP000000670); PMS and Mutual Funds are offered through MOAMC which is group company of MOSL. Motilal Oswal Wealth Management Ltd. (MOWML): PMS (Registration No.: INP000004409) is offered through MOWML, which is a group company of MOSL. *Motilal Oswal Securities Ltd. is a distributor of Mutual Funds, PMS, Fixed Deposit, Bond, NCDs and IPOs. *Real Estate is offered through Motilal Oswal Real Estate Investment Advisors II Pvt. Ltd. which is a group company of MOFSL. *Private Equity is offered through Motilal Oswal Private Equity Investment Advisors Pvt. Ltd which is a group company of MOFSL. *Research & Advisory services is backed by proper research. Please read the Risk Disclosure Document prescribed by the Stock Exchanges carefully before investing. There is no assurance or guarantee of the returns. Investment in securities market are subject to market risk, read all the related documents carefully before investing. Details of Compliance Officer: Name: Neeraj Agarwal, Email ID: email@example.com, Contact No.:022-30801085.
Regd office : Motilal Oswal Tower , Rahimtullah Sayani Road , Opposite Parel ST Depot , Prabhadevi, Mumbai -400025; Tel No.:022 3980 4263. Correspondence Address: Palm Spring Centre, 2nd Floor, Palm Court Complex, New Link Road, Malad (West), Mumbai- 400 064. Tel No: 022 -3080 1000. Registration Numbers: MCX 29500, NCDEX -NCDEX-CO-04-00114, NCDEX SPOT : 10014. FMC Unique membership code : MCX : MCX/TCM/CORP/0725, NCDEX: NCDEX/TCM/CORP/0033. Website: www.motilaloswal.com Investment in Commodities is subject to market risk and there is no assurance or guarantee of the returns. Please read the Risk Disclosure Document and Do's & Don'ts prescribed by the commodity Exchanges carefully before investing. Details of Compliance Officer: Name: Suchitra Muley, Email ID: firstname.lastname@example.org, Contact No.:022-30801085.
It seems you have logged in as a Guest, We cannot execute this transaction.
Would you like to open an account to avail the services?