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 longterm trend of a security. Almost 86 per cent of the stocks that constitute the Nifty 50 equity benchmark index are trading above their 200-DMAs, while 14 per cent of the stocks are trading below the 200-DMAs, which was at the same level in prior week. This week, BPCL and Infosys closed below 200 DMA, while Adani Enterprises and SBIN closed above 200 DMA. Over the last five trading sessions of the week, the Nifty index initially saw a decline of nearly 155 points in the first two sessions. However, a buying trend emerged starting in the second hour of the second session, and this buying momentum continued, propelling the index to reach a peak of 19,472 points. This impressive recovery wiped out the entire loss experienced in the first two sessions. Currently, the index has closed just above the descending trendline of the correction, and further strength is expected if it can maintain this level. At present, there is a positive gap between the Nifty's closing value (19,444) and its 200-day moving average (18,333.95). The index has consistently held its position above the 200-day moving average, indicating a difference of approximately 6.05 per cent.