Nearly 420 stocks of the BSE500 index hit below their 200 daily moving average (DMA) on February 24 after Russia ordered military action against Ukraine.
Analysts said that the stock falling below 200-DMA indicates short term weakness and negative bias. The 200-DMA is considered a major support level for an index or stock since it is a long-term average, analysts explain.
Heavyweights Reliance Industries Ltd, Asian Paints Ltd, Bajaj Finserv Ltd, Bajaj Auto Ltd, Hero MotoCorp Ltd, Kotak Mahindra Bank, Wipro Ltd, HCL Technologies Ltd, Infosys Ltd, Mahindra & Mahindra Ltd, ICICI Bank Ltd, Axis Bank, State bank of India, and Tata Motors all hit below 200 DMA.
Both the Sensex and Nifty declined over 4.7% each, their biggest slide since May 4, 2020. Both indices hit their six-month low. Sensex's fall on Thursday was the fourth biggest fall in terms of points among the top 10. In terms of percentage it was eighth biggest fall. Broader market, too, nosedived more than 6%. All the sectoral indices were in the red with the majority of the sectors down almost 5-8%.