SENTIMENT INDICATORS

200-DMA INDICATOR[EasyDNNnews:PaidContentStart]
The 200-day moving average (DMA) indicator, a widely tracked gauge of long-term market breadth, showed a mild softening in the Nifty 50’s internal strength this week. Between 13 November 2025 and 19 November 2025, the number of Nifty stocks trading above their 200-DMA slipped from 76 to 74, while those trading below the long-term trendline inched up from 24 to 26. This slight deterioration in breadth came despite the Nifty gaining 0.67 per cent during the same period, indicating that the headline index’s move was supported by fewer stocks than before. The divergence suggests that while the index moved higher, participation narrowed and market strength became more selective. Stock-specific action highlighted this shift. Dr Reddy’s Laboratories managed to cross above its 200-DMA, signalling renewed momentum in the pharmaceutical heavyweight. In contrast, Ultratech Cement slipped below its 200-DMA, pointing to emerging pressure in the cement space. Overall, the latest breadth 

readings reflect a market that is still stable on the surface, but with slightly weakening internals. Investors may prefer to stay aligned with fundamentally strong names that continue to hold above their 200-DMA, while remaining alert to stocks slipping below this crucial long-term trend indicator, as those could be early signs of fatigue. 

SECTORAL SENTIMENT INDICATOR
The sectoral 200-day moving average (200-DMA) indicator, which tracks the percentage of constituents trading above their long-term trendline within each Nifty sector, showed a mixed but mildly weakening breadth profile for 19 November 2025. Unlike the broad declines seen earlier this month, the latest readings indicate limited movement across most sectors, with only two showing meaningful directional shifts. The Nifty PSU Bank index registered the most notable change, with a sharp 25 per cent rise in the share of stocks trading above their 200- DMA. This improvement reflects continued strength in staterun lenders, supported by robust credit growth and improving balance sheet metrics. In contrast, Nifty Realty experienced a 20 per cent decline, marking the steepest drop of the week. The fall suggests cooling momentum in Real Estate counters, hinting at profit-taking after a strong multi-month rally. Among other sectors, Nifty Pharma saw a modest 5 per cent increase, indicating incremental buying interest and suggesting that defensives continue to find favour amid intermittent volatility. Meanwhile, Nifty Bank, Nifty IT, Nifty Financial 

Services, Nifty Private Bank, Nifty Auto, Nifty Metal, Nifty FMCG, and Nifty Media all remained unchanged, reflecting consolidation and a lack of decisive sector rotation during the week. Overall, the data signals a market that is stabilising after recent swings, with strength returning selectively in PSU banks and pockets of defensives, while real estate witnessed clear profit-booking. With most sectors flat, the market appears to be in a wait-and-watch phase despite the Nifty’s positive movement during the week. 

Indicator To Gauge Internal Strength
This indicator evaluates the internal strength of the broader market by tracking how many Nifty 500 constituents are making fresh 52-week highs versus those hitting new 52-week lows. Typically, a higher ratio of highs to lows reflects broad-based bullish participation, while rising lows point to emerging weakness beneath the surface. For the week ended 19 November 2025, the market’s internal tone softened. The number of Nifty 500 stocks printing new 52-week highs slipped from 2 to 1, while fresh 52-week lows declined from 4 to 2. Although both figures moderated, the drop in new highs indicates a cooling of upward momentum, suggesting that fewer stocks are participating in the index’s move. Over the same period, the Nifty 500 index edged up 0.38 per cent, rising from 23,816 to 23,906.3. The index gain alongside weakening high-low breadth highlights a narrow advance, where only a limited set of stocks contributed to the broader benchmark’s rise. Overall, the reduction in both new highs and 

new lows points to a market that is drifting sideways rather than showing decisive strength. A meaningful improvement in new highs, accompanied by a further contraction in lows, would be needed to confirm a broad-based upswing in the coming weeks.

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