Market-Risk-Reward

Abstract

Market-Risk-Reward is a market breadth analysis tool built to answer a simple but important question: is an index rally being supported by the broader market, or only by a narrow group of heavyweights? Instead of relying on index price alone, the project inspects the health of the underlying constituents across both US and Indian equity markets.

The data pipeline automatically extracts index constituents, downloads historical prices through yfinance, and computes how many stocks are trading above key moving averages such as the 20-day, 50-day, and 200-day averages. That makes the output useful as a sentiment gauge because it shows whether participation is expanding, fading, or diverging from the headline benchmark.

To make the signal actionable, the tool visualizes breadth with interactive Plotly charts and overlays explicit threshold bands for overbought and oversold conditions. The result is a practical decision-support layer for traders who want a clearer read on market internals before chasing strength or stepping into weakness.

What I Built

• Breadth analysis across both US and Indian indices made it easier to spot whether market strength was broad or concentrated.
• Tracking the share of stocks above 20-day, 50-day, and 200-day averages created a compact, interpretable sentiment signal.

Impact

• Built a trader-facing market-internals tool that highlights overbought and oversold extremes with clearer evidence.
• Turned market-breadth data into an interpretable decision aid for judging whether rallies and selloffs were broad-based.