Sentiment Indicator

200-DMA INDICATOR:
This indicator measures the percentage of Nifty 50 stocks that are trading above/below their 200-day simple moving averages. The 200-DMA is considered important as it is one of the basic technical indicators that can be used to determine the long-term trend of a security. Almost 84 per cent of the stocks that constitute the Nifty 50 equity benchmark index are trading above their 200-DMAs while 16 per cent of the stocks are trading below the 200-DMAs which was at 86 per cent in the prior week. This week SBIN and Reliance closed below 200 DMA while Infosys closed above 200 DMA. During the past five trading sessions of the week, the Nifty index initially experienced a downward movement of around 178 points in the first two sessions. Nevertheless, a buying pattern emerged starting from the third session, and this purchasing momentum persisted, driving the index to recover the decline, reaching the level of 19,452.80. On the trading session of Wednesday, the index began with a gap up and subsequently underwent substantial profit booking, causing it to conclude 100 points lower than the day's peak. Any failure to surpass Wednesday's peak could potentially lead to further weakness. At the current moment, a positive gap exists between the Nifty's closing value (19,347.45) and its 200-day moving average (18,364.40). The index has consistently maintained its position above the 200-day moving average, signifying a variance of roughly 5.35 per cent. This shows a minor decrease from the 6.05 per cent variance noted merely a week ago. The market's rebound from the decline of two sessions over the span of three sessions implies that the bears retain influence, which might have contributed to this 0.7 per cent contraction. It is prudent to await the index's directional breakout, given its current range-bound behaviour.