NSE Market Breadth Advance Decline Ratio | QUANTSCASE — NSE Stock Screener

The NSE market breadth advance decline ratio (ADR) measures the number of advancing stocks versus declining stocks on the NSE. A ratio above 1.5 indicates strong bullish momentum, while below 0.5 signals bearish pressure. For a deeper dive into market sentiment, explore our market breadth guide to complement your analysis.

1.5+

Bullish ADR Threshold

0.5-1.5

Neutral Zone

<0.5

Bearish ADR Signal

2.0+

Overbought Extreme

Why NSE Market Breadth Advance Decline Ratio Matters

The ADR reveals the underlying strength or weakness of market moves, often diverging from index prices. A rising Nifty with a falling ADR warns of narrow leadership and potential reversal. Use our momentum screener to confirm stocks participating in the trend.

During corrections, a low ADR (below 0.5) suggests widespread selling, while a quick bounce above 1.0 indicates buying interest. Tracking ADR over multiple sessions helps filter noise and identify sustainable trends.

📌 Key Insight
When Nifty makes a new high but ADR stays below 1.5, it signals a weak rally — avoid chasing and wait for breadth confirmation.

How to Use the Advance-Decline Ratio for Trading

Calculate the ADR — Divide total advancing stocks by total declining stocks on the NSE. Use daily data from QUANTSCASE's breadth page.

Identify Extremes — An ADR above 2.0 suggests overbought conditions, while below 0.5 indicates oversold. These extremes often precede reversals.

Look for Divergences — If Nifty rises but ADR falls, fewer stocks are participating — a bearish divergence. Conversely, falling Nifty with rising ADR hints at accumulation.

Combine with Screeners — Use the RSI momentum screener to filter stocks with strong relative strength when ADR is bullish.

Set Alerts — Monitor ADR thresholds on QUANTSCASE's macro dashboard to get notified when breadth shifts significantly.

💡 Pro Tip
Use a 10-day moving average of the ADR to smooth noise — a sustained move above 1.2 confirms a healthy uptrend.

Key ADR Thresholds for Trading Decisions

Indicator	Threshold	Signal	Why It Matters
Advance-Decline Ratio	> 2.0	✅ Bullish	Extreme bullishness — consider taking profits on long positions.
Advance-Decline Ratio	1.5 - 2.0	✅ Bullish	Strong breadth — favorable for long trades with trend confirmation.
Advance-Decline Ratio	0.5 - 1.5	⚡ Watch	Neutral — wait for a breakout above 1.5 or below 0.5 for direction.
Advance-Decline Ratio	< 0.5	❌ Bearish	Widespread selling — avoid new longs and consider hedging.

✅ Entry Checklist Using ADR

✓ADR above 1.5 for at least two consecutive sessions

✓Nifty trading above its 20-day moving average

✓Individual stock showing volume confirmation on breakout

✓No bearish divergence between price and ADR

✗Avoid entry if ADR is below 1.0 despite index gains

⚠️ Common Mistake
A common mistake is relying solely on ADR without price confirmation. Always check that the index is also trending in the same direction as breadth.

Try It on QUANTSCASE

Use our momentum screeners to find stocks aligned with strong market breadth. The tools below help filter high-probability setups.

Strong Trend Screener →

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OBV Divergence Screener →

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This content is for educational purposes only and does not constitute financial advice. Always do your own research before trading.