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NT magnification is an indicator that divides Nikkei average stock price with TOPIX.
NT magnification = Nikkei average stock price ÷ TOPIXIt is used in the Japanese stock market to compare whether the Nikkei average is strong or the TOPIX is strong.
When the NT magnification increases, the Nikkei average is relative to TOPIX. On the other hand, when the NT magnification decreases, the TOPIX is relative to the Nikkei average.
In this article, we will organize the meaning of NT magnification, what you can see in the rise and fall, how to use for beginners, and points of caution.
What is NT Magnification?
"N" of NT magnification means Nikkei average stock price, "T" means TOPIX.
The formula is simple.
NT magnification = Nikkei average stock price ÷ TOPIXFor example, if the Nikkei average stock price is 40,000 yen, and the TOPIX is 2,500, the NT magnification is 16 times.
40,000 ÷ 2,500 = 16NT magnification is used as an auxiliary indicator to see which type of symbol is strong in the Japanese stock market.
Difference between Nikkei and TOPIX
To understand the NT magnification, you need to know the difference between Nikkei and TOPIX.
Nikkei average stock price is a stock price index composed of 225 symbols. It is easy to understand the high stock price, and some large stocks and high-tech stock movements may increase in the index.
On the other hand, TOPIX is an index to see the movements close to the TSE Prime market. Because it is calculated based on market capitalization, it is easy to reflect the movement of a wide range of brands such as banks, automobiles, trading companies, and stocks.
| Index | Main Features |
|---|---|
| Nikkei Average Stock Price | Consists of 225 symbols, making it easy to understand |
| TOPIX | Close to the TSE Prime, easy to see the movement of the entire market |
What do you know when the NT magnification increases?
When the NT magnification increases, the Nikkei average is stronger than TOPIX.
In this case, it may be the following market.
- Strong semiconductor and large high-tech
- Some株 strains are pushing Nikkei average
- Overseas investor funds are concentrated on large stocks
- Higher銘柄onential value than the entire market
In other words, even if you see only the Nikkei average, it may not be spread throughout the market.
What do you know when the NT magnification is lower?
When the NT magnification is lower, TOPIX means a more relative state than the Nikkei average.
In this case, it may be the following market.
- Strong value shares such as banks and trading companies
- Buy a wide range of products including automobiles and stocks
- Not only some large stocks, but the entire market is expanding
- Relatively weak symbols with high Nikkei average contribution
In the market where TOPIX is strong, it may be difficult to understand only Nikkei average.
For beginners
For beginners, it is easy to understand that the NT magnification is considered to be the indicator to see which of Nikkei average and TOPIX are strong.
The market seems to be strong when the Nikkei average is rising. However, if the NT magnification is too large, only some large stocks may be affected.
On the other hand, even if the Nikkei average rise is small, TOPIX is firm and there is a possibility that there is a purchase in a wide range of brands.
When confirming, it becomes easier to judge not only the NT magnification but also the following indicators.
- TOPIX
- Number of銘柄s
- Purchase Price
- Industry Index
- Forex and interest rate movement
How to use
The NT magnification can be used to check the dev。 of the market.
For example, if the TOPIX does not grow even though the Nikkei average is rising, the capital may be concentrated only on semiconductor and some large stocks.
In addition, it is also helpful to consider whether the Nikkei Average ETF and TOPIX ETF are superior.
| ETF Type | Index |
|---|---|
| Nikkei Average ETF | Nikkei225 |
| TOPIX ETF | TOPIX |
However, NT magnification is not an indicator that tells the timing of buying and selling directly. It is an auxiliary indicator to check the contents of the market until it is.
Common misunderstandings
Since the NT magnification is high, it is not possible to see it safely because it is dangerous and low.
In the market with strong growth and large-scale high-tech stocks, NT magnification may continue. On the other hand, the NT magnification will be easier in the market with strong banks and value shares.
It is important to think about why NT magnification is moving rather than the number itself.
Find out which industries are being bought, where the funds of overseas investors are facing, and how interest rates and exchanges are influenced.
- NT magnification is an indicator that divides Nikkei average stock price with TOPIX
- Used to compare relative weaknesses of Nikkei and TOPIX
- In the event of a rise, large and minor shares may be led
- A wide range of TOPIX-type symbols may be relatively strong when degrading
- Not only the NT magnification but also the spread of the entire industry and market
It is easy to use if you understand the NT magnification first, "the indicator to see whether the Japanese stock is only a part of a large stock, or the market is rising."