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 long-term trend of a security. Almost 72 per cent of the stocks that constitute Nifty 50 equity benchmark index are trading above their 200-DMAs while 28 per cent of the stocks are trading below the 200-DMA. On a weekly basis, we observed that there was a net change of 10 per cent of Nifty stocks rising above their 200-DMA, which is a positive sign. In the last four trading sessions, Dr Reddy’s Laboratories, HDFC, Kotak Mahindra Bank, UltraTech Cement, and HDFC Life Insurance Company surged above their 200-DMA while no Nifty stocks plunged below the key indicator. This shortened week was a one-way upward journey as all the past four trading sessions ended in the green. NSE Nifty 50 index rose 410 points or 2.33 per cent since last Wednesday’s close (August 10). Interestingly, the index was subjected to gap-ups and strong buying led to a further rally. FIIs have been net buyers for the past 13 trading sessions, which brought positivity to the market. Every intraday dip is being bought and thus, a one-way journey can be observed. On Wednesday, Nifty hit a high of 17,965, which is just 35 points away from the 18,000 level.