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 48 per cent of the stocks that constitute Nifty 50 equity benchmark index are trading above their 200-DMAs while 52 per cent of the stocks are trading below the 200-DMA. On a weekly basis, we observed that there was a net change of 14 per cent of Nifty stocks falling below their 200-DMA. In the last five trading sessions, Axis Bank, Bajaj Auto, Power Grid Corp, HDFC Bank, Hero MotoCorp, JSW Steel, Kotak Mahindra Bank, and HDFC plunged below their 200-DMA while Dr Reddy’s Laboratories rose above the key indicator. The aftermath of Fed’s interest hike action hit bulls below their belt as Nifty shredded 860 points or 4.85 per cent in the last five trading sessions.