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 56 per cent of the stocks that constitute Nifty 50 equity benchmark index are trading above their 200-DMAs while 44 per cent of the stocks are trading below the 200-DMA. On a weekly basis, we observed that there was a net change of 8 per cent of Nifty stocks rising above their 200-DMA. In the last four trading sessions, Axis Bank, HDFC Bank, HDFC, and Kotak Mahindra Bank rose above their 200-DMA while none of Nifty 50 stocks plunged below the key indicator. During this truncated week, Nifty made huge swings in both directions as global sentiments weighed heavily. The benchmark index hovered around the 200-DMA to find support. Interestingly, it witnessed a strong gap-up opening on Tuesday and sustained above the 17,200 level, which further cheered the bulls. In the last four trading sessions, Nifty rose 416 points or 2.46 per cent. RBI MPC increased interest rates by 50 basis points on Friday, which was in line with the market expectations. RBI, in its latest meeting, said that it remains committed to fighting against soaring inflation.