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 62 per cent of the stocks that constitute Nifty 50 equity benchmark index are trading above their 200-DMAs while 38 per cent of the stocks are trading below the 200-DMA. On a weekly basis, we observed that there was a net change of 6 per cent of Nifty stocks falling below their 200-DMA. In the last five trading sessions, Reliance Industries, UltraTech Cement, and Shree Cement plunged below their 200-DMA while none of Nifty 50 stocks rose above the key indicator. Volatility was through the roof this week as Nifty made a total swing of 667 points during the week. Fears of aggressive Fed interest rate hikes weighed investors’ sentiment globally as the markets witnessed a sharp sell-off on Friday, after which, a strong recovery led Nifty to oscillate in a range of 17,600-17,900 for the past two days.