Half of Sensex stocks, one-third in mid, small cap indices below 200-DMA 

Among Sensex stocks Bajaj Finance, Titan, Asian Paints, HUL, Infosys, Nestle India, HCL Tech, Kotak Mahindra Bank, Bajaj Finserv, TCS, IndusInd Bank, Tech Mahindra, ITC and Wipro fell below their respective 200 DMAs.

Nearly half of the stocks in India's flagship Sensex index and one third stocks in BSE MidCap and Smallcap closed below their 200-day moving average (DMA) on Friday, ahead of key general election polls results due on June 4.

The 200-DMA is a key parameter used by technical analysts, representing the average closing price of a stock over the past 200 days. It helps assess a stock's momentum, relative to its current price.

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Among Sensex stocks Bajaj Finance, Titan, Asian Paints, HUL, Infosys, Nestle India, HCL Tech, Kotak Mahindra Bank, Bajaj Finserv, TCS, IndusInd Bank, Tech Mahindra, ITC and Wipro fell below their respective 200 DMAs.

Narendra Solanki of Anand Rathi Shares and Stock Brokers said stocks briefly slipping below their 200 DMA is not a concern. It is only if the stocks stayed below that level for a long time that one had to review the holding.

In the BSE SmallCap, 419 out of 1000 stocks are trading below the 200 DMA, with around 70 being over 20 percent lower and approximately 349 trading between 1-20 percent lower.

In the MidCap category, out of 127 stocks, 31 are below the 200 DMA, with 10 being 10-40 percent lower and 21 being 1-9 percent lower from the 200 DMA.

Some analysts said the fervour for mid and small caps has cooled of late because of expensive valuations. Investors are looking for investment ideas at reasonable valuations and  because of that many second line stocks have lost momentum even as the Nifty has been making record highs.

Last week, Indian markets experienced significant volatility, with the Sensex and Nifty closing slightly higher on Friday following five consecutive sessions of decline. The BSE Midcap index ended marginally higher after three days of losses, and the Smallcap rebounded after falling in three out of the last four sessions.

The trend could change dramatically on Monday as exit polls are now predicting the NDA coalition to win over 350 seats in the general elections. The results will be announced on June 4.

Solanki anticipates a gap up opening in the Nifty on Monday, with short covering likely to drive the index higher.

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