SENTIMENT INDICATORS

200-DMA INDICATOR [EasyDNNnews:PaidContentStart]

The 200-day moving average (200-DMA), a clean gauge of long term market breadth, has weakened meaningfully in the latest week. Between February 25 and March 4, 2026, the share of Nifty 50 constituents trading above their 200-DMA fell from 54 per cent to 38 per cent, while the share below the long-term average rose from 46 per cent to 62 per cent. With the Nifty down 3.90 per cent over the same period, the signal is hard to ignore. The sell-off is no longer confined to a few heavy weights, it is spreading across the index. The stock-level shifts add weight to the message. In the latest reading, ADANIPORTS, BAJAJFINSV, GRASIM, ICICIBank, SBILIFE, TataCONSUM, TRENT, and ULTRACEMCO have moved below the 200-DMA, indicating that even large, liquid names are slipping out of long-term uptrends. When the 'below 200-DMA' basket expands this quickly, it typically marks a phase where rallies become more selective, leadership thins out, and the market starts rewarding Defence over aggression. In short, breadth has taken a clear hit. 

Nearly two-thirds of the Nifty 50 is now below its 200-DMA, a setup that usually warrants patience and tighter risk control until participation improves and the list of stocks reclaiming the 200-DMA begins to grow again. 

SECTORAL SENTIMENT INDICATOR
The sectoral 200-day moving average (200-DMA) breadth now points to a market where participation has turned uneven and leadership is thinning out across pockets. As of March 4, 2026, the sharpest deterioration is visible in Nifty FMCG. Only 6.67 per cent of FMCG stocks are trading above the 200-DMA, meaning 93.33 per cent are now below it. The segment also saw the steepest week-on-week fall in breadth, with stocks above the 200-DMA down 40 percentage points. Nifty Financial Services has also weakened materially, with just 40 per cent stocks above the 200-DMA (down 25 points), signalling softer participation in a key leadership space. Cyclicals have not escaped the pressure. Nifty Metal stands at 66.67 per cent above the 200-DMA (down 13.33 points), while Nifty Private Bank has slipped to an even split, with 50 per cent above (down 10 points). Within the broader financial complex, Nifty Bank and Nifty PSU Bank are still relatively better placed at 66.67 per cent above each, but both have softened by 8.33 points, hinting that the cracks are widening. Nifty Auto is at 53.33 per cent above (down 6.67 points), showing momentum 

is fading here too. The laggards remain clear. Nifty IT and Nifty Realty are at 0 per cent above the 200-DMA, while Nifty Media has only 20 per cent stocks above (80 per cent below) with no improvement. Overall, the message is decisive. Breadth has weakened across most sectors, making the market’s internal structure less supportive of broad-based rallies and reinforcing the need for tighter selectivity. 

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 flags rising internal stress, even before headline indices reflect the full extent of the damage. Between February 25 and March 4, 2026, the breadth picture deteriorated sharply. The number of Nifty 500 stocks hitting new 52-week highs collapsed from 9 to zero, while fresh 52-week lows jumped from 5 to 18, showing that selling pressure has broadened across the market and leadership has thinned out materially. This shift played out alongside a 4.25 per cent decline in the Nifty 500, which fell from 23,403.8 to 22,409.8, reinforcing that the weakness is not confined to a handful of heavyweight stocks. The gap between disappearing new highs and a rising count of 52-week lows suggests the market is seeing more stock-level breakdowns even as the index trends lower. In such 

phases, participation typically narrows and rebounds often lack breadth, with strength limited to a smaller set of names. Unless the number of new lows starts easing and fresh highs re-emerge, the breadth scorecard remains tilted towards a weaker internal setup, making selectivity and disciplined positioning more relevant than broad-based buying. 

[EasyDNNnews:PaidContentEnd] [EasyDNNnews:UnPaidContentStart]

[EasyDNNnews:UnPaidContentEnd]