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 setup weakened between June 17, 2026, and June 24, 2026, indicating some deterioration in market breadth. The percentage of Nifty 50 stocks trading above their 200-DMA declined from 48 per cent to 42 per cent, while the share of stocks trading below this long-term average increased from 52 per cent to 58 per cent. During the same period, the Nifty slipped 0.68 per cent, showing that the index weakness was accompanied by a reduction in broader participation. The reading has again moved further below the halfway mark, suggesting that the recovery remains selective and lacks strong confirmation. This reflects a cautious underlying setup, as more stocks are trading below their long-term trend indicator. At the stock level, Bharti Airtel crossed above its 200-DMA, offering a positive trend signal. However, Bajaj Auto, Coal India, Hindalco, and Tata Motors Passenger Vehicles slipped below their 200-DMA, indicating renewed weakness in select index constituents. Overall, the latest reading points to a mildly weakening breadth setup. For a stronger recovery signal, the percentage of stocks above the 200-DMA needs to move back above 50 per cent, while fresh breakdowns should remain limited.

SECTORAL SENTIMENT INDICATOR

The sectoral 200-DMA breadth as of June 24, 2026, shows a mixed market participation setup compared with the previous reading. While select sectors continue to remain above their long-term trend line, weakness has emerged in a few cyclical and PSU-linked pockets. Nifty Pharma remains the strongest sector, with 90 per cent of its constituents trading above the 200-DMA, supported by a further 5 percentage point improvement. Nifty Private Bank also continues to stand out, with 80 per cent of its stocks above the 200-DMA, though the reading remained unchanged from the previous week. Nifty Realty showed another positive move, rising to 80 per cent above the 200-DMA after a 10 percentage point improvement. Nifty Bank stayed at the neutral mark, with 50 per cent of its stocks trading above the 200-DMA, suggesting that banking breadth has held steady but has not strengthened further. Nifty Financial Services also remained unchanged at 45 per cent, keeping it slightly below the halfway mark and indicating that broader financial participation is still not fully convincing. On the weaker side, Nifty PSU Bank saw a notable deterioration, with stocks above the 200-DMA falling from 41.67 per cent to 25 per cent, marking a decline of 16.67 percentage points. Nifty Auto also weakened to 46.67 per cent after a 13.33 percentage point drop, while Nifty Metal slipped to 40 per cent, down 6.67 percentage points. These declines suggest that some recent strength has faded in key cyclical areas. The weakest pockets remain Nifty IT at 20 per cent and Nifty FMCG at 33.33 per cent, although FMCG improved by 6.67 percentage points. Nifty Media stayed unchanged at 40 per cent. Overall, the latest reading points to a selective sectoral breadth setup, led by Pharma, Private Bank, and Realty. For stronger confirmation, more sectors need to sustain above the 50 per cent mark.

Indicator To Gauge Internal Strength

This indicator tracks the real strength of the broader market by comparing Nifty 500 stocks hitting fresh 52-week highs with those slipping to fresh 52-week lows. Expanding new highs, supported by low new lows, signal healthier participation. On the other hand, fewer highs or a rise in lows indicate that market gains may be driven by only a limited set of stocks. As per the latest reading, the Nifty 500 moved marginally higher from 23,109.7 on June 17, 2026, to 23,126.3 on June 24, 2026, registering a modest gain of 0.07 per cent. During the same period, stocks touching fresh 52-week highs declined from 5 to 1, while fresh 52-week lows remained unchanged at 1. This suggests that broader market participation has weakened despite the index holding near higher levels. The index has not corrected meaningfully, but the sharp fall in fresh 52-week highs shows that leadership has narrowed. At the same time, the stability in 52-week lows indicates that selling pressure is still contained and has not spread aggressively across the Nifty 500 universe. Overall, the latest reading points to a cautious internal market strength setup. While the index remains firm, the drop in new highs highlights a lack of strong participation. For sentiment to improve, fresh highs need to expand again decisively, while fresh lows should stay muted.

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