SENTIMENT INDICATORS

200-DMA INDICATOR [EasyDNNnews:PaidContentStart]

The 200-day moving average (DMA), a key barometer of long term market breadth, reflected a measured improvement in participation over the past week. Between February 5, 2026, and February 11, 2026, the number of Nifty 50 constituents trading above their 200-DMA increased from 56 to 66, while those trading below declined from 44 to 34. However, on a net basis, the effective expansion in durable trend participation translates into a rise of three additional stocks sustaining posi tions above the 200-DMA after accounting for offsetting moves within the index basket. This improvement coincided with a 0.50 per cent gain in the Nifty, suggesting that the index-level advance was supported by better internal alignment rather than isolated heavyweights. At the stock level, Apollo Hospitals, Bajaj Finserv, Dr Reddy’s Laboratories and Hindustan Unilever closed above their respective 200-DMAs, signalling strengthening trend structures across healthcare, financial services and defen sive consumption. In contrast, HCL Technologies slipped below its 200-DMA, highlighting emerging weakness within select IT 200-DMA INDICATOR names. While the rise in stocks above the long-term average is constructive, the relatively modest net improvement indicates that the market remains in a rebuilding phase rather than a broad-based breakout. Sustained expansion in this metric will be critical to confirm a durable uptrend in the coming weeks.



SECTORAL SENTIMENT INDICATOR

The sectoral 200-DMA indicator presents a rotational and selective breadth profile, with leadership shifting across segments rather than expanding uniformly. Within financials, Nifty Bank remained stable on a week-on-week basis, maintaining strong breadth readings. Nifty Financial Services also remained unchanged, indicating that participation within the broader financial complex has stabilised but not yet expanded. Nifty Private Bank improved by 10 per cent, reflecting strengthening momentum among frontline private lenders. Nifty PSU Bank recorded an 8.33 per cent increase, signalling continued traction in public sector banking names. The IT space showed notable weakness. Nifty IT dropped 30 per cent in terms of stocks trading above the 200-DMA, marking a sharp deterioration in sectoral breadth and reinforcing emerging technical pressure in technology counters. Nifty Auto and Nifty Metal recorded no change week-on-week, suggesting consolidation within cyclical segments. Real Estate stocks exhibited modest improvement, with Nifty Realty rising by 10 per cent in stocks trading above the 200-DMA, indicating gradual stabilisation. Nifty FMCG improved sharply by 26.66 per cent, marking a strong recovery in defensive consumption breadth and suggesting renewed buying interest in the segment. Sectoral Sentiment Indicator Nifty Pharma advanced by 15 per cent, signalling continued accumulation in healthcare counters. Nifty Media improved by 30 per cent, making it one of the strongest performers in terms of breadth expansion and reflecting improving sentiment within the space. Overall, sectoral breadth reflects constructive rotation. Strength in Private Banks, PSU Banks, FMCG, Pharma and Media contrasts with pronounced weakness in IT, while Financial Services remains in consolidation. The evolving structure suggests improving participation, albeit with clear sectoral divergence rather than uniform expansion.

Indicator To Gauge Internal Strength

The internal market strength indicator, which tracks the number of Nifty 500 stocks registering fresh 52-week highs versus those marking new 52-week lows, reflects a meaningful improvement in participation. Between February 5, 2026, and February 11, 2026, the number of stocks hitting new 52-week highs increased from 0 to 6, while new 52-week lows remained at zero. The absence of fresh lows alongside a rise in new highs indicates strengthening internal structure without emerging downside stress. During the same period, the Nifty 500 index advanced by 1.59 per cent, rising from 23,411.7 to 23,783.05. The stronger move in the broader index compared to the Nifty’s 0.50 per cent gain suggests participation beyond a narrow group of large-cap names. Although the absolute number of new highs remains moderate, the directional shift from zero to six is technically constructive and signals improving risk appetite.Taken together, the rise in stocks above their 200-DMA, improving sectoral breadth in key segments, and the emergence of fresh 52-week highs indicate that market internals are gradually strengthening. However, the sharp deterioration in IT breadth highlights lingering pockets of weakness. For a sustained bullish phase to materialise, the market will need continued expansion in new highs, stabilisation in weaker sectors, and further improvement in long-term breadth indicators. Until then, a selective and disciplined approach remains warranted

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