Sentiment Indicators

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 longterm trend of a security. Almost 90 per cent of the stocks that constitute the Nifty 50 equity benchmark index are trading above their 200-DMAs while 10 per cent of the stocks are trading below the 200-DMAs which is a 2 per cent decrease in the number of stocks trading above 200 DMA as compared to last Wednesday. This week Kotak Bank closed below their 200- DMA from Nifty 50 stocks. During the last monthly expiry trading session, the Nifty began on a high note with a gap up but soon experienced a significant sell-off, resulting in a sharp decline of nearly 120 points. However, it managed to recover approximately 78 per cent of this drop during subsequent trading sessions. Unfortunately, in the last session, it relinquished all those gains and closed 207 points lower. At one point during intraday trading, it even fell below the crucial psychological support level of 19,500, but it managed a slight recovery in the closing session, finishing just above this level.