Attached below is the output from the sentiment filter algorithm that I have coded, it can be any such filter that is based on the concept of sentiment and the results would not be much different.
Last 2 year sentiment:
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We can see that small & midcap stocks were the first to start its downtrend right at around 15-01-2018 much before Nifty index reflected the change. Again there was a brief change in sentiment starting at 27-03-2018 lasting for about a month till 20-04-2018
Last 50 Days sentiment: (As of 06/07/2018)
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Even though Nifty Index trend is not clear, the sentiment trend is clearly down starting from 14-06-2018. Last couple of days the sentiment is neutral for Nifty,Largecap & Midcap which can form a bottom, but there is no bottom yet for small caps.
I have started rotating my funds in different segment stocks based on this filter as it gives my some rough guidance on which segment stocks to give higher priority and how much weightage I can give them. I plan to enter the market when the segment sentiment trend is moving up and comeout when it starts to go down.
