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 66 per cent of the stocks that constitute Nifty 50 equity benchmark index are trading above their 200-DMAs while 34 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 falling below their 200-DMA. In the last five trading sessions, only one stock, i.e., Shree Cement rose above its 200- DMA while UPL and Tata Motors plunged below the key indicator. It was more of a consolidatory week for Nifty as it traded in a minor range of 296 points, which hasn’t been the case in the past several weeks. Interestingly, it is even lesser than the trading session of August 30 alone (376 points). The benchmark index slipped 135 points or 0.76 per cent in the past five trading sessions. Despite the minor range, the volatility was through the roof as the index faced major gap-downs on multiple occasions amid weak global cues. However, what was positive is that the index managed to see a strong recovery on all the occasions. The European energy crisis, followed by Beige Book release by US Fed brought some pain to the global markets but the Indian indices remained resilient.