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 68 per cent of the stocks that constitute Nifty 50 equity benchmark index are trading above their 200-DMAs while 32 per cent of the stocks are trading below the 200-DMA. On a weekly basis, we observed that there was a net change of 2 per cent of Nifty stocks rising above their 200-DMA. In the last four trading sessions, only one stock, i.e., UltraTech Cement rose above its 200-DMA while none of Nifty 50 stocks plunged below the key indicator. In this truncated week, Nifty went all over the place as a strong tug-of-war was seen between the bulls and the bears. The benchmark index lost some points in the previous week, which was largely due to bad global cues. On Monday, Nifty witnessed the second-worst gap-down opening of the year 2022 due to the strong hawkish statement of the US Fed Chairman at the Jackson Hole symposium.