What is Heatmap in Instrument Analysis?

The Heatmap Calendar is one of the six instrument analysis tools that provide a detailed analysis of individual stocks, ETFs, indices or investment themes to identify investment-worthy opportunities. It helps investors find important dates and periods of performance for specific instruments.

For example, let’s consider the given chart. During the three months, COLPAL stock showed mostly profitable performance, delivering an average daily return of +0.13%. The best return during this period (+2.82%) was observed on Monday, May 15, 2023. On the other hand, the worst loss (-1.67%) occurred on Thursday, May 18, 2023. During this period, there were distinct trends in the performance of COLPAL. Firstly, there was a bearish trend that started on March 24, 2023, and continued until March 29, 2023. Investors experienced losses of -1.68% during this bearish trend. However, this was followed by a bullish trend that began on May 8, 2023, and concluded on May 15, 2023. This bullish trend resulted in a significant gain of +6.62% for investors.

In summary, the Heatmap provides a daily analysis that helps investors to identify favourable and unfavourable trends based on historical data.

Follow these easy steps to use Alpha Builder’s tool “Heatmap calendar” to identify important dates and periods of performance:

1. On the home-page, click “Alpha Builder” or select sub-menu item “ALPHA BUILDER” under the “TOOLS” head of the “PRODUCTS” menu.
2. Scroll down the page and click on “Heatmap calendar“.
3. The chart displays heatmap calendar for NIFTY-50 by default.
4. Click on the right-side text-box with text as “Symbol“, type the symbol and click on one of the presented options.
5. Now click on the hand lens icon next to the text-box.
6. The chart will depict the important dates and period of performance for the selected symbol.

Useful Links:
Heatmap Calendar India
How to Use Alpha Builder (YouTube)