SENTIMENT INDICATORS

200-DMA INDICATOR[EasyDNNnews:PaidContentStart]
The 200-day moving average (DMA), a widely tracked gauge of long-term market breadth, reflected a softening in the Nifty 50’s internal strength over the past week. Between January 7, 2026, and January 13, 2026, the number of Nifty constituents trading above their 200-DMA declined from 72 to 66, while stocks below the long-term trendline rose from 28 to 34. This deterioration in breadth came alongside a 2.23 per cent decline in the Nifty, indicating that selling pressure was broad-based rather than restricted to a few heavyweight stocks. Stock-level movements reinforce this cautious undertone. ETERNAL and ONGC managed to cross above their 200-DMA during the period, indicating selective improvement in long-term trend support. In contrast, APOLLOHOSP, BAJAJFINSV, HDFCLIFE, Reliance and TMPV slipped below their 200-DMA, signalling emerging weakness across a broader set of stocks, including key index heavyweights. Overall, the latest 200-DMA breadth data suggest a market where internal participation remains uneven, with limited recoveries offset by a wider loss of long-term 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 slipping below this critical long-term average.

SECTORAL SENTIMENT INDICATOR
The sectoral 200-day moving average (200-DMA) indicator for January 13, 2026, 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 Financial Services was the key laggard for the day, witnessing a 25 percentage point decline in stocks trading above the 200-DMA. This pullback indicates renewed pressure in financial names after a brief phase of stabilisation, highlighting that the segment is struggling to sustain momentum. Nifty Realty also showed clear weakness, with breadth slipping 20 per cent, signalling that participation within the sector has thinned further and long-term trend support remains fragile. Nifty Auto saw mild weakness as well, with breadth easing 6.67 per cent, pointing to some loss of momentum after earlier resilience. Nifty Pharma, on the other hand, recorded a 5 per cent decline in breadth, suggesting some profit-taking even within defensive pockets. Meanwhile, Nifty Bank, Nifty IT, Nifty Private Bank, Nifty PSU Bank, Nifty Metal, Nifty FMCG 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. Financials and Realty are showing fatigue, while defensives are not providing a meaningful offset. 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 typically signals improving participation, while an increase in new lows points to underlying weakness. Between January 7, 2026, and January 13, 2026, the market’s internal tone weakened noticeably. The number of Nifty 500 stocks hitting new 52-week highs fell from 4 to 1, reflecting shrinking upside participation. At the same time, new 52-week lows rose sharply from 0 to 5, indicating an expansion in downside pressure across the broader market. During this period, the Nifty 500 declined by 2.23 per cent, sliding from 24,016.6 to 23,480.7. The combination of falling new highs and a clear rise in new lows highlights a deteriorating breadth setup, suggesting that selling pressure has become more widespread rather than confined to a few stocks. Overall, the internal market structure has turned fragile. The contraction in new highs points to a lack of leadership, while the rise in new lows underscores growing stock-specific weakness. For a more constructive market undertone to re-emerge, the coming sessions would need to show a sustained expansion in new highs along with a meaningful reduction in new lows, signalling healthier and broader participation.

(Closing price as of January 13, 2026) 

*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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