SENTIMENT INDICATORS

200-DMA INDICATOR [EasyDNNnews:PaidContentStart]
The 200-day moving average (DMA), a key indicator of longterm market breadth, showed a slight improvement in the Nifty 50’s internal strength this week. Between November 27, 2025, and December 3, 2025, the number of Nifty constituents trading above their 200-DMA decreased marginally from 76 to 70, while those below the long-term trendline increased from 24 to 30. This slight decline in breadth occurred even as the Nifty itself registered a 0.88 per cent drop, suggesting that the index’s fall was not as broadly supported by stocks. Stock-specific trends offered further insight. Wipro (WIPRO) crossed above its 200-DMA, showing renewed strength among select IT counters, while stocks like Apollo Hospitals (APOLLOHOSP), Cipla (CIPLA), Grasim (GRASIM), and ONGC (ONGC) crossed below their 200-DMA, indicating possible consolidation or emerging weakness in these names. 

Overall, the latest breadth reading points to a market that has seen a slight deterioration in internal strength, driven by an increase in stocks slipping below their 200-DMA. Investors may prefer to stay aligned with fundamentally resilient names holding above their 200-DMA, while keeping an eye on stocks drifting below this crucial long-term trendline, as those could indicate emerging weakness. 

SECTORAL SENTIMENT INDICATOR
The sectoral 200-day moving average (200-DMA) indicator for December 3, 2025, showed a somewhat mixed but stable market breadth across Nifty sectoral indices. While many sectors displayed no meaningful change, there were a few clear movements that highlighted emerging strengths and weaknesses. Nifty IT was the standout performer of the week, with a 10 per cent increase in the share of constituents trading above their 200-DMA, signalling a strong revival in sentiment and a potential early-stage recovery in the IT sector. This improvement suggests that buying interest is returning to the sector after a prolonged period of underperformance. On the defensive side, Nifty Pharma and Nifty Financial Services both posted a 5 per cent decrease, indicating a mild softening in sentiment within these sectors. In contrast, Nifty Realty and Nifty Metal experienced a decline of 10 per cent and 6.67 per cent, respectively, reflecting softening momentum in the realty and metal sectors. Nifty PSU Bank saw a decline of 16.67 per cent, indicating emerging pressure in public-sector lenders, signalling caution in that segment. Nifty Media also decreased by 10 per cent, showing emerging weakness in this sector. The rest of the sectors, including Nifty Bank, Nifty Private 

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Bank, Nifty Auto, Nifty FMCG, displayed no significant change, suggesting a period of consolidation rather than sector rotation. Overall, the sectoral breadth for the week indicates a market that remains steady at a surface level, but with selective movements beneath. IT showed signs of fresh strength, while Pharma, Financial Services, Realty, Metals, PSU Banks, and Media softened. With many sectors remaining flat, the broader market is in a consolidation phase, while the Nifty continues its mild uptrend. 

Indicator To Gauge Internal Strength
This indicator assesses the broader market’s internal strength by tracking how many Nifty 500 constituents are hitting fresh 52-week highs versus those marking new 52-week lows. A higher count of new highs typically signals broad-based bullish participation, whereas an uptick in new lows can indicate emerging weakness beneath the surface. For the week ending December 3, 2025, the internal market tone showed a mild deterioration. The number of Nifty 500 stocks registering new 52-week highs dropped from 2 to 0, while those falling to new 52-week lows surged from 1 to 8. These changes highlight a shift towards emerging weakness beneath the surface, with more stocks hitting new lows and fewer reaching fresh highs. During the same period, the Nifty 500 index fell by 1.00 per cent, dropping from 23,955.2 to 23,716.3. The index’s decline, coupled with the widening gap between new highs and lows, suggests a slight weakening of market breadth compared to the previous week.  

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Overall, while the market is experiencing a pullback, the increase in new lows and the lack of new highs indicate a slightly more cautious undertone. For a more robust market recovery, a resurgence in new highs, supported by a contraction in lows, would be needed in the coming weeks to confirm a healthier market breadth.

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