Nearly 75 percent, or 374 stocks, in the Nifty 500 index are trading below their 200-day moving average. Among the Nifty 50, about 66 percent, or 33 stocks, are currently below the key technical level.
Among these, 30 stocks are from the benchmark Nifty 50; 286 from the Nifty 500; 61 from the Nifty MidCap 100, and 58 are from the Nifty SmallCap 100 index.
Even as some fundamental analysts have raised questions over valuation of the Nifty and its constituents, technical analysts don’t see any immediate pause for the index. Rohit Srivastava, Founder and Market Strategist at indiacharts.com, sees the Nifty rising to 20,600 level. He believes the index will continue with the trend of higher highs and higher lows.
Currently, around 452 or 90 percent firms in Nifty 500, around 95 in Nifty Midcap 100 and 90 in Nifty Smallcap 100 are trading above the 200 DMA. Analysts say this indicates that they are potentially nearing an overbought zone
The Nifty is trading well below its 200 Day Moving Average (DMA) of 5632. A moving average is the average price of a stock over a certain time frame. The 200-day moving average represents the average price over the past 200 trading days.
Last one hour of the March series has been riding high on volatility. The market was grinding at 5140-5150 in the morning but pulled up to 5170, well off the lows of the day, says Udayan Mukherjee, managing editor, CNBC-TV18.
Udayan Mukherjee, managing editor of CNBC-TV18 sums up the market as we gear for the closing today. The Nifty is currently well ahead of 5200 and the 200-day moving average.