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 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 10 per cent in the prior week. This week Britannia, HDFC Bank and SBIN closed below 200 DMA while Infosys closed above 200 DMA.In the past four trading sessions of the week, the Nifty index faced a significant 375-point decline in the initial two sessions. However, a buying trend emerged from lower levels starting in the second hour of the third session. This buying momentum persisted, driving the index to a peak of 19,482 points, showcasing a remarkable recovery of nearly 225 points from the week's lowest levels. Looking forward, a decisive breakthrough above the 19,500 level is poised to reignite buying interest. Presently, a positive gap separates the Nifty's closing value (19,465) from its 200-day moving average (18,298.25).