CNX 500 after a very lengthy period of sideways correction that started in OCT 2021 has shown a very strong reversal in APRIL 2023.
The relative strength chart has now given a fresh signal of further strengthening of CNX 500 over NIFTY, suggesting that CNX 500 stocks shall outperform NIFTY stocks for quite some time. It also means that if there is a correction in markets, the Nifty stocks will correct more than CNX 500 stocks.
From levels point of view today's close has happened at 1.18. As long as the ratio sustains below 1.20 this can move down towards 1.13 and more.
The balance part of this month could lead by the segment.
CNX500 outperformance might be coming to an end here as it enters into the PRZ of a bullish harmonic reversal for Nifty over CNX500. Would wait for confirmation before considering it