Market Breadth
The extent to which a market's move is shared across its constituents rather than concentrated in a few.
Formula
Measures include advance-decline ratio, percentage of securities above their 200-day moving average, and new highs minus new lows
Unit
%
In depth
Breadth answers how many securities are participating, which a capitalisation-weighted index cannot show — the Nifty can make a new high with under a third of its constituents above their own 200-day averages. Narrow breadth is a description of concentration and is routinely reported as a warning, though its record as a timing tool is poor and this dictionary makes no such claim. It is most useful as context for interpreting an index level rather than as a signal in itself. Several breadth measures exist and they can disagree, so the specific measure should always be named.
Worked example
The index sits at an all-time high while only 42% of its constituents trade above their own 200-day averages. That is a factual statement about concentration and says nothing about what the index will do next.
Illustrative figures, chosen so the arithmetic is easy to follow. Not a live price and not a valuation of any company.
Educational reference only
This entry explains what “Market Breadth” means. It is not investment advice and not a recommendation to buy or sell any security. Any numbers above are illustrative, not live prices, and nothing here predicts price direction or rates a stock. Consider your own circumstances and consult a SEBI-registered investment adviser before acting.