SENTIMENT INDICATORS

200-DMA INDICATOR [EasyDNNnews:PaidContentStart]

The 200-day moving average (DMA), a widely tracked gauge of long-term market breadth, showed a mild deterioration in the Nifty 50’s internal strength between February 11 and February 18, 2026. The number of constituents trading above their 200 DMA fell from 66 to 60, while those below the long-term trend line rose from 34 to 40. With the Nifty down 0.52 per cent over the same period, the breadth data suggest the pullback was accompanied by some weakening in participation, not just an index-level dip. Even so, the split remains 60:40 in favour of stocks above the 200 DMA, which indicates the longer-term base is still holding. However, the drop from 66 to 60 shows the market has lost a bit of balance. It remains vulnerable to rota tion-led swings. Stock-level action reflects this tone. Hindustan Unilever, Reliance Industries and Tech Mahindra slipped below the 200 DMA during the week, pointing to pressure in a few influential large caps. There were no notable names moving back above the 200 DMA in the same window, keeping the breadth signal cautious. Overall, the message is simple: the mar ket is not breaking down, but it is not broadening either. Until more stocks push back above the 200 DMA and the above count starts rising again, strength may stay patchy and breakouts may need tighter risk control. 

SECTORAL SENTIMENT INDICATOR

The sectoral 200 DMA breadth snapshot for February 18, 2026, shows participation is narrowing. Breadth slipped across most sectors, even as a few large pockets still hold a respectable long-term base. Financials remain the main support. Nifty Bank has 83.33 per cent of constituents above the 200 DMA and was unchanged on the day. Nifty PSU Bank also held steady at 75 per cent. Nifty Private Bank is still strong at 70 per cent above the trendline, but the share of stocks above the 200 DMA fell by 10 percentage points, signalling leadership is becoming less even. The only clear improvement came from Nifty Financial Services, where breadth rose by 5 points to 65 per cent. Cyclicals are steady but not improving. Nifty Auto stayed flat at 73.33 per cent above the 200 DMA. Nifty Metal is also at 73.33 per cent, but eased by 6.67 points. The laggards continue to drag the tone. Nifty IT remains in long-term damage, with 0 per cent of stocks above the 200 DMA and a further 10-point fall in participation. Nifty Realty is still the weakest, with only 10 per cent above the 200 DMA and another 10-point decline, leaving 90 per cent below the long-term trend. Defensives are mixed. Nifty FMCG dropped 13.33 points to 33.33 per cent above the 200 DMA, while Nifty Pharma slipped 10 points to 60 per cent. Nifty Media saw the sharpest deterioration, down 20 points, with only 20 per cent above the 200 DMA. A sustained stabilisation in banks would help the index breathe. Overall, support is concentrated in financials and a few cyclicals, while weakness is deepening in IT, Realty, Media and FMCG. Until participation improves, the market is more likely to reward select strength 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 phase, new highs broaden out while new lows stay limited, signalling wider participation. When lows begin to rise and highs dry up, it often flags growing internal stress even if headline indices look steady. Between February 11 and February 18, 2026, the breadth picture stayed largely stable, but with a slight soft patch. The number of Nifty 500 stocks hitting fresh 52-week highs edged up from 6 to 7, suggesting leadership is still present in pockets. At the same time, new 52-week lows moved off the floor, rising from 0 to 1, indicating that downside pressure has reappeared, even if only marginally. Over the same period, the Nifty 500 slipped by 0.58 per cent, easing from 23,783.1 to 23,645.8, which points to a mild pullback rather than a broad breakdown. Overall, the balance still favours strength because new highs continue to outnumber new lows. However, the return of even a small number of fresh lows is a reminder that participation is not uniformly improving. For a cleaner breadth signal, the market would ideally see lows remain near zero while the count of new highs expands beyond single digits, confirming that strength is spreading rather than staying selective. 

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