SENTIMENT INDICATORS

This indicator measures the percentage of Nifty 50 stocks that are trading above/below their 200-day simple moving averages.[EasyDNNnews:PaidContentStart]

200-DMA INDICATOR
The 200-day moving average (DMA), a widely tracked barometer of long-term market breadth, showed a marginal improvement in the Nifty 50’s internal strength between January 21 and January 28, 2026. The number of constituents trading above their 200-DMA inched up from 48 to 50, while those below the long-term trendline eased from 52 to 50. With the Nifty up 0.70 per cent over the same period, the breadth data suggest the market saw a modest stabilisation rather than a decisive reversal. However, the fact that the index is now split 50, 50 around the 200-DMA indicates long-term conviction is still fragile, and the market remains sensitive to pockets of weakness. Stock-level action underlines this mixed tone. GRASIM, LT and TCS moved back above the 200-DMA during the week, signalling selective recovery in a few heavy, liquid names. At the same time, ASIANPAINT and BHARTIARTL slipped below the 200-DMA, showing that leadership remains rotational and not uniformly supportive. Overall, the breadth shift argues for higher selectivity and disciplined positioning. Strength is emerging in parts of the index, but with half the basket still below its long-term trend, recent breakdowns should be treated with caution until broader participation improves.

SECTORAL SENTIMENT INDICATOR
The sectoral 200-day moving average (200-DMA) breadth shows the market is rotating, not sitting in a flat and calm consolidation. As of January 28, 2026, long-term trend support is still strongest in Nifty Metal (80 per cent of stocks above the 200-DMA), followed by Nifty Bank (75 per cent) and Nifty IT (70 per cent). Participation is also fairly healthy in Nifty PSU Bank (66.67 per cent), while Nifty Auto and Nifty Private Bank sit at 60 per cent each. Nifty Financial Services is evenly split at 50 per cent above and 50 per cent below, signalling a tug of war rather than a clear trend. The weakness, however, is concentrated and persistent. Nifty Realty and Nifty Media remain the weakest links, with only 10 per cent constituents above the 200-DMA and 90 per cent below in both. Defensives are also patchy: Nifty FMCG has just 20 per cent above the long-term average, while Nifty Pharma is at 45 per cent above and 55 per cent below. During the week, breadth improved in Nifty IT (plus 10 percentage points), Nifty Auto (plus 6.67), Nifty Financial Services (plus 5) and Nifty Pharma (plus 5), but Nifty FMCG slipped sharply (minus 13.33) and most other sectors were unchanged. Overall, the sectoral 200-DMA picture points to narrowing risk appetite, making a selective, disciplined approach more sensible than broad-based buying.

Indicator To Gauge Internal Strength
This indicator captures the internal strength of the broader market by tracking how many Nifty 500 stocks are registering fresh 52-week highs versus those slipping to new 52-week lows. In a healthy market, new highs expand while new lows remain contained, signalling broad participation. A reversal in this balance often points to rising internal stress, even before headline indices weaken materially. Between January 21 and January 28, 2026, the breadth picture improved sharply. The number of Nifty 500 stocks hitting new 52-week highs rose from 0 to 7, signalling a return of upside leadership. At the same time, fresh 52-week lows collapsed from 23 to 1, indicating that downside pressure cooled meaningfully. This shift coincided with a 1.08 per cent rise in the Nifty 500, which climbed from 22,835.2 to 23,082.1, suggesting the rebound was supported by improving participation rather than being driven by a narrow set of heavyweights. Overall, the reversal is constructive. New lows have dried up and new highs have reappeared, signalling that selling pressure has eased and leadership is starting to return. The key test now is whether highs keep expanding while lows stay muted.

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