The BSE Sensex reached an all-time high on November 24 when it kissed 62,412. The previous all-time high of 62,245 was achieved over a year ago, on October 19, 2021. Since then, the equity markets have faced a lot of upheaval, for a plethora of reasons.
However, off late, things have taken a turn for the better, and with the return of foreign portfolio investors (FPIs), the strength of Indian markets has improved manifold. This can also be gauged from the fact that on November 24, of the 30 constituents in the BSE Sensex, 26 stocks were trading above their 200-day moving average (200 DMA). One stock was at its 200 DMA and only three stocks were trading below their 200 DMA.
Significance of the 200 DMA