SENTIMENT INDICATORS

200-DMA INDICATOR [EasyDNNnews:PaidContentStart]
The 200-day moving average (DMA) indicator, which tracks the proportion of Nifty 50 stocks trading above or below their long-term average, reflected a notable weakening in market breadth this week. As of November 4, 2025, only 66 per cent of Nifty 50 stocks were trading above their 200-DMA—a sharp decline from 78 per cent recorded on October 29, 2025. Correspondingly, the share of stocks below their 200-DMA rose, indicating broad-based softness across sectors. This deterioration in market breadth came alongside a 2.09 per cent drift in the Nifty 50 index, signalling that the recent market correction was accompanied by declining participation across heavyweights. Among individual names, Cipla, Dr Reddy’s Laboratories, ITC, NTPC, Power Grid, and Ultratech Cement slipped below their 200-DMA, pointing to weakness in the pharma, FMCG, utilities, and cement segments. No major stock managed to cross above the 200-DMA during the week, underscoring a loss of momentum even in defensives. Overall, 

the data suggests a broad-based cooling in market strength, with fewer stocks sustaining their uptrends. Investors may consider exercising caution, focusing on fundamentally strong names that continue to trade above their long-term averages, while avoiding fresh exposure to those slipping below this critical support line. 

SECTORAL SENTIMENT INDICATOR
The sectoral 200-day moving average (200-DMA) indicator, which tracks the percentage of stocks trading above their longterm averages within each Nifty sector, reflected a broad-based decline in market breadth for the week ended November 4, 2025. On the positive side, Nifty Pharma stood out as the only gainer, recording a 5 per cent rise in the share of stocks trading above their 200-DMA. The improvement indicates fresh buying interest in defensives, reflecting investor preference for stability amid market volatility. In contrast, several key sectors witnessed declines. Nifty IT, Nifty Private Bank, and Nifty Realty each slipped 10 per cent, signalling weakness across technology, financial, and property counters. Nifty PSU Bank dropped 8.3 per cent, while Nifty Auto and Nifty FMCG both fell around 6.7 per cent. Nifty Financial Services also saw a 5 per cent reduction in stocks sustaining above their long-term averages. The broad-based declines point to a loss of momentum in both cyclical and consumptiondriven spaces. Meanwhile, Nifty Bank, Nifty Metal, and Nifty Media remained flat compared to the previous week, 

indicating consolidation and a lack of decisive trend in these segments. Overall, the data highlights a defensive tilt in market positioning. While pharma showed resilience, the broader market experienced selling pressure across rate-sensitive and growth-oriented sectors, consistent with the Nifty’s 2.09 per cent decline during the same period. 

Indicator To Gauge Internal Strength
This indicator evaluates the internal strength of the market by tracking the number of Nifty 500 stocks hitting new 52-week highs versus those making 52-week lows. A higher count of new highs relative to lows typically indicates broad-based bullish momentum, while the opposite reflects underlying weakness. For the week ended November 4, 2025, the internal market tone turned mixed. The number of Nifty 500 stocks hitting new 52-week highs rose to 7 from just 2 in the previous week, signalling some improvement in select stocks. However, the appearance of 3 new 52-week lows—compared to none earlier—suggests emerging pressure in certain pockets of the market. During the same period, the Nifty 500 index slipped 1.16 per cent, from 23,952.40 to 23,675.45, reflecting mild weakness in the broader market despite a rise in new highs. Overall, while the increase in fresh highs hints at selective strength, the return of new lows and the benchmark’s 

decline point to a bifurcated market structure—with gains concentrated in a few outperformers and weakness resurfacing in lagging names. A consistent rise in new highs accompanied by reduced lows would be essential to confirm a broad-based recovery in the coming weeks. 

*LEGEND: ▪️DMA - Daily Moving Average. ▪️ MACD - Moving Average Convergence Divergence ▪️ RMI - Relative Momentum Index ▪️ ROC - Rate of Change ▪️RSI - Relative Strength Index

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