Stock Bal Dashboard
New to StockBal Index? Click to know more
Welcome to the StockBal dashboard that provides you with a birds’ eye view of Stock Bal – StockPatri’s proprietary index of the Relative Strength, computed for all stocks traded on NSE. This dashboard is updated each trading day with the latest value of StockBal, along with the date of last update.
How to use StockBal Dashboard?
The charts on the dashboard are drawn for a randomly selected stock (do not read anything into the choice). You can change the selection to view any stock of your choice. Click on the ‘Stock’ field within Filters to select your desired company name and NSE ticker symbol. You can type few characters from either the name of the company or it’s ticker symbol on NSE and select your desired stock from the list.
The StockBal dashboard shows the closing price on the previous trading day, and the StockBal Index across all three timeframes – Varshik Bal (annual), Masik Bal (monthly) and Saptahik Bal (weekly). It also shows the percentage change in the stock price during the previous year, month and week, respectively.
Check out the Stock Bal and continue scrolling to know more – What is StockBal?
What is StockBal?
StockBal is a unique metric designed to assess the Relative Strength of individual stocks across three distinct time frames: annual, monthly, and weekly. By assigning scores between 0 and 100 for each time frame, StockBal provides investors and traders with a simple and clear way to evaluate a stock’s performance over different periods. This scoring system allows users to quickly identify how well a stock is doing relative to other stocks in the market.
Higher scores indicate stronger stocks during the given timeframe, making it easier for you to identify opportunities and to support your trading and investment decisions. With three separate scores, you can gain insights into both short-term fluctuations and long-term trends. This multifaceted approach helps traders and investors make more informed decisions about buying, holding, or selling stocks based on their performance across various time frames.
Just like any other metric, the StockBal must be used in combination with other fundamental and technical analysis methods before taking a decision.
Why are there three variations of the Stock Bal Index?
While analyzing stock price movements, we have to be mindful about the time-frame for which the analysis is done. The time-frame needs to align with the trading and/or investment strategy.
In order to ensure that the Stock Bal index meets diverse requirements and provides a comprehensive view of a stock’s performance, the StockPatri team is publishing the index across three different time-frames. These three variations of the Stock Bal Index are:
- Varshik Bal (Annual StockBal) – This measures the relative strength of the stock compared to the broader market over the last one year.
- Masik Bal (Monthly StockBal) is a measure of the relative strength over the last one calendar month, and will be useful for strategies such as swing trading, position trading, portfolio re-balancing etc.
- Saptahik Bal (Weekly StockBal) is an index computed on a weekly timeframe, and may be useful for short term traders who adopt strategies such as momentum trading, day trading etc.
Each time frame captures different market dynamics and trends, allowing investors to analyze how a stock behaves over the long term versus the short term. The annual score reflects the stock’s overall performance, while the monthly and weekly scores highlight more immediate trends and fluctuations.
How can Stock Bal Index be used?
By analyzing these three variations of the Stock Bal Index together, investors and traders can make better-informed decisions based on their investment strategy and risk tolerance.
For instance, a stock that shows strong performance in the long term but weak performance in the short term may be suitable for long-term investors who can weather short-term volatility. We did some quick analysis to check if this theory is supported by current data. Check out the results of this Sample Dipstick Analysis (in the box alongside).
Conversely, traders focused on short-term gains may prioritize stocks with strong weekly or monthly scores, but may still want to use a threshold value of annual strength as a filtering criteria. This layered approach enables users to align their investment strategies with their financial goals while taking into account varying market conditions.
Sample Dipstick Analysis (Based on StockBal on 27th Sep 2024)
Median Returns of ALL stocks = 3.47%
Median Returns of stocks with (Varshik Bal > 80) AND (Masik Bal < 50) = 5.13%
This represents 48% higher potential of returns, compared to the entire market, for the 186 stocks that met this criteria on 27th Sep 2024.
Note: Median returns of stocks is defined as (Highest price upto 14th Oct – Close on 27th Sep) / Close on 27th Sep, representing highest possible returns in 10 trading days
What is Relative Strength?
Relative Strength refers to the performance of a stock in comparison to the overall market or a specific benchmark. For instance, StockBal, which is a measure of Relative Strength, is computed by comparing the performance of each stock to other stocks that are part of the NSE 500.
This helps investors understand how well a stock is doing relative to the broader market. By analyzing relative strength, traders can identify stocks that are outperforming or underperforming compared to others over a specified period – annual, monthly or weekly (Varshik Bal or Masik Bal or Saptahik Bal). This comparative analysis provides valuable insights into trends and market sentiment, allowing investors to make informed decisions about their portfolios.
Essentially, relative strength provides a way to gauge a stock’s momentum and stability in various market conditions. A stock with higher value of StockBal, i.e. strong relative strength, may indicate bullish sentiment and potential for future growth, while a stock with low StockBal (weak relative strength) might suggest bearish sentiment or potential declines. By focusing on stocks with strong relative strength, investors can better position themselves in the market and enhance their chances of achieving favorable returns.
What is the advantage of using Relative Strength?
You may be thinking that you already know the performance trends of the stocks that you track, and in such a situation, why do we need another measure of relative strength? What additional information will StockBal provide me?
Varshik StockBal: Illustrative example
Let’s illustrate this with an example.
You purchased Eicher Motors one year ago at Rs 3,486.60 and it closed today (16th October 2024) at Rs 4,678.25, a whopping increase of over 34%!
Before you start celebrating, you should take a look at the Varshik Bal (Annual StockBal) for Eicher Motors today, which is at 48.3 (on a 0-100 scale).
This basically means that if you randomly picked any stock from the list of NSE 500 stocks, the random pick is likely to have done better than Eicher Motors. Yet, someone who would have picked up Eicher Motors one year ago would have probably attributed the 34% returns to their superior stock picking skills!
Example: Varshik Bal (Annual)
Stock: Eicher Motors
Current Price: 4,678.25 (16th Oct ’24)
Purchase Price: 3,486.60 (1 year ago)
% Increase: 34.2% (1 year)
Varshik Bal (Annual StockBal): 48.3
Of course, there is no issue in celebrating 34% annual returns, but this should not lead to incorrect inferences and subsequent decisions. And, this is where a companion like StockBal truly shines, as it helps you look at the data very objectively.
This concept holds good in the opposite direction too, when the broader market has fallen.
Masik StockBal: Another Illustrative example
Let us take another example on the same date – 16th October 2024 – but using the Masik Bal (Monthly StockBal), instead of the Varshik Bal. Let us assume that you purchased Voltas Limited one month ago at Rs 1,916 and it closed today at Rs 1,881.30, down by almost 2% in just one month.
On an annualized basis, that is a significant downfall of 20%!
Before you start cursing yourself, take a look at the Masik Bal (Monthly StockBal) for Voltas Limited, which is 50.75.
Example: Masik Bal (Monthly)
Stock: Voltas Limited
Current Price: 1,881.30 (16th Oct ’24)
Purchase Price: 1,916 (1 month ago)
% Increase: -1.8% (1 month)
Masik Bal (Monthly StockBal): 50.75
Can you guess what this means?
If you had randomly picked any NSE 500 stock, the random pick is likely to have done worse than Voltas!
StockBal – The Saviour
Investing and trading in stocks is an emotionally charged activity, with alternating emotions of fear and greed playing havoc with our psyche and decision making.
StockBal is the anchor you can use for your decision making. It is your shield against the emotional roller coaster ride of the stock market. It is your ticket to sanity, during both bullish and bearish periods.
These are just some illustrative examples of how StockBal can be used or interpreted. We are sure that you will find many more ways to use StockBal in your trading and investment journey.
Last but not the least, let us re-iterate that no single metric can predict the movement of stock prices with 100% accuracy. However, you can understand how the probabilities are stacked up, with objective analysis of data, trends and patterns.
Please note that this is not investment advice, and past performance is not indicative of future performance. Trading and investing in stock market are subject to inherent risks. Please read the disclaimers and conduct your own analysis before putting your hard earned money at risk.