SENTIMENT INDICATORS

200-DMA INDICATOR [EasyDNNnews:PaidContentStart]
The 200-day moving average (DMA), a widely tracked gauge of long-term market breadth, reflected a further softening in the Nifty 50’s internal strength over the past week. Between December 11, 2025, and December 17, 2025, the number of Nifty constituents trading above their 200-DMA declined from 68 to 62, while stocks below the long-term trendline rose from 32 to 38. This deterioration in breadth came even as the Nifty slipped marginally by 0.31 per cent, highlighting that selling pressure was more broad-based rather than confined to a few heavyweights. Stock-level movements reinforce this cautious undertone. Bajaj Finserv (BAJAJFINSV) and HDFC Life Insurance (HDFCLIFE) slipped below their 200-DMA during the period, signalling emerging weakness in select financial names that had earlier shown relative resilience. Notably, no Nifty constituent managed to decisively cross above the 200-DMA this week, underscoring the lack of fresh leadership on the upside. Overall, the latest 200-DMA breadth data suggest a market where internal participation 

is weakening, with a growing number of stocks losing longterm trend support. From an investor’s perspective, this calls for a selective approach, favouring fundamentally strong stocks that continue to hold above their 200-DMA, while remaining cautious on names that are slipping below this critical long-term average. Such moves often precede phases of consolidation or deeper correction. 

SECTORAL SENTIMENT INDICATOR
The sectoral 200-day moving average (200-DMA) indicator for December 17, 2025, reflects a largely stable but selectively uneven market breadth across Nifty sectoral indices. Most sectors showed no change in the proportion of stocks trading above their long-term averages, suggesting a phase of consolidation rather than aggressive sector rotation. Nifty IT was the key laggard for the day, witnessing a 10 percentage point decline in stocks trading above the 200-DMA. This pullback indicates renewed pressure in IT stocks after a brief phase of stabilisation, highlighting that the sector continues to struggle to sustain momentum amid global uncertainty. Nifty Pharma, on the other hand, showed relative strength, with a 5 per cent increase in breadth. This uptick points to selective accumulation and reinforces the sector’s defensive appeal in a cautious market environment. Nifty FMCG also saw mild weakness, with breadth slipping 6.67 per cent, signalling some profit-taking after its earlier resilience. Meanwhile, Nifty Bank, Nifty Financial Services, Nifty Private Bank, Nifty PSU Bank, Nifty Auto, Nifty Metal, Nifty Realty, and Nifty Media recorded 

no change, indicating a broadly range-bound undertone across key cyclical and consumption-oriented sectors. Overall, the 200-DMA picture suggests that the market remains steady at the index level, but internal leadership is narrow. Defensive pockets like Pharma are seeing incremental interest, while IT and FMCG show signs of fatigue. With most sectors flat, the broader market continues in a wait-and-watch mode, awaiting clearer directional cues. 

Indicator To Gauge Internal Strength
This indicator gauges the broader market’s internal strength by tracking how many Nifty 500 constituents are hitting fresh 52-week highs versus those slipping to new 52-week lows. A rising number of new highs generally points to improving participation, while an increase in new lows signals underlying weakness. For the period between December 11, 2025, and December 17, 2025, the market’s internal tone turned slightly weaker. The number of Nifty 500 stocks hitting new 52-week highs increased from 1 to 2, indicating limited upside participation. However, this was offset by a simultaneous rise in new 52-week lows from 1 to 2, suggesting that downside pressure also picked up. During the same period, the Nifty 500 index declined by 0.23 per cent, slipping from 23,550.85 to 23,496.05. The fall in the index, combined with a balanced rise in both new highs and new lows, reflects a mixed and indecisive breadth setup rather than a clear directional bias. Overall, the internal market structure remains fragile. While 

a marginal increase in new highs hints at selective buying interest, the parallel rise in new lows highlights ongoing stockspecific weakness. For a healthier market undertone to emerge, the coming weeks would need to see a clear expansion in new highs alongside a contraction in new lows. This would confirm broader and more durable participation on the upside. 

(Closing price as of December 17, 2025) 

*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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