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 notable improvement in the Nifty 50’s internal strength between January 28 and February 4, 2026. The number of constituents trading above their 200-DMA jumped from 50 to 60, while those below the long-term trendline eased from 50 to 40. With the Nifty up 1.71 per cent over the same period, the breadth data suggest the rally had wider participation rather than being driven by a narrow set of index heavyweights. However, the fact that 40 stocks remain below the 200-DMA indicates longterm conviction is improving but still not fully secure, and the market remains sensitive to pockets of weakness. Stock-level action underlines this mixed tone. ADANIPORTS, BHARTIARTL, ICICIBank, POWERGRID, Reliance, SUNPHARMA and TMPV moved back above the 200-DMA during the week, signalling selective recovery across a broader set of large, liquid names. At the same time, INFY and TCS slipped below the 200-DMA, showing that leadership remains rotational and not uniformly supportive. The direction is improving, but durability will depend on whether this participation holds in the weeks ahead.

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 February 4, 2026, long-term trend support is strongest in Nifty Bank (83.33 per cent of stocks above the 200-DMA), followed by Nifty Metal (80 per cent) and Nifty Auto (73.33 per cent). Participation is also fairly healthy in Nifty Private Bank (70 per cent) and Nifty PSU Bank (66.67 per cent), while Nifty Financial Services is firmer at 60 per cent above and 40 per cent below, signalling a clearer positive tilt than an even split. 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 stands at 55 per cent above and 45 per cent below. During the week, breadth improved in Nifty Auto (+13.33 percentage points), Nifty Financial Services (+10), Nifty Private Bank (+10), Nifty Pharma (+10) and Nifty Bank (+8.33), but Nifty IT slipped sharply (-30) and most other sectors were unchanged. Overall, the sectoral 200-DMA picture points to improving breadth in select sectors, while weak sectors remain largely unchanged.

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 28 and February 4, 2026, the breadth picture stayed supportive on the downside but cooled on the upside. The number of Nifty 500 stocks hitting new 52-week highs fell from 7 to 1, suggesting upside leadership narrowed after the prior week’s jump. At the same time, fresh 52-week lows eased from 1 to 0, indicating downside pressure dried up further. This shift coincided with a 1.96 per cent rise in the Nifty 500, which climbed from 23,082.1 to 23,535, pointing to an advance that came with muted breakdowns even as fewer stocks pushed into fresh highs. Overall, the highs–lows spread points to contained downside stress, while upside participation turned more selective during the week.

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