SENTIMENT INDICATORS

200-DMA INDICATOR  [EasyDNNnews:PaidContentStart]



 

The 200-day moving average setup improved between July 8, 2026, and July 15, 2026, indicating a strengthening in market breadth alongside index gains. The percentage of Nifty 50 stocks trading above their 200-DMA increased from 44 per cent to 46 per cent, while the share of stocks trading below this long-term average declined from 56 per cent to 54 per cent. During the same period, the Nifty advanced by 0.82 per cent, suggesting that the index recovery was accompanied by an improvement in participation. However, the reading remains below the halfway mark, indicating that the broader trend revival has not yet gained decisive strength. This keeps the setup cautiously positive, as more than half of the index con stituents still trade below their long-term trend indicator. At the stock level, HDFC Bank, Tech Mahindra, and UltraTech Cement crossed above their 200-DMA, generating positive trend sig nals. Dr Reddy’s Laboratories and Maruti Suzuki slipped below their 200-DMA, reflecting weakness in two major index constit-uents. Overall, the latest reading points to a steadily improving breadth setup. For a stronger recovery signal, the percentage of stocks above the 200-DMA must move beyond 50 per cent, while fresh breakdowns should remain limited. 

SECTORAL SENTIMENT INDICATOR 

The sectoral 200-DMA breadth as of July 15, 2026, shows a broader improvement in market participation, with strength spreading across several sectors, although a few pockets continue to lag. Nifty Pharma remains the strongest segment, with 95 per cent of its constituents trading above the 200-DMA, while the reading remained unchanged from the previous week. Nifty Private Bank and Nifty Realty also display robust breadth, with 90 per cent of their stocks holding above the long-term trend line after improving by 10 percentage points each. This marks a clear week-on-week improvement overall. Nifty IT recorded the sharpest improvement in the latest reading, rising to 50 per cent above the 200-DMA following a 30 percentage point increase. Nifty Financial Services also strengthened, reaching 50 per cent after a 15 percentage point rise, while Nifty Bank improved to 58.33 per cent after gaining 8.33 percentage points. These readings indicate broader participation across financial and technology stocks. Nifty Media advanced to 50 per cent following a 10 percentage point improvement, moving back to the neutral threshold. Nifty Auto was the only sector to weaken, with stocks above the 200-DMA declining to 60 per cent after a 6.67 percentage point fall. Despite the drop, the sector remains above the halfway mark, suggesting that its longer-term trend structure is still constructive. The weakest pockets remain Nifty PSU Bank at 8.33 per cent and Nifty Metal at 20 per cent. Nifty FMCG stayed unchanged at 26.67 per cent, while Nifty Pharma maintained its dominant reading. Overall, the latest data points to a healthier and less concentrated sectoral breadth setup, led by Pharma, Private Bank, Realty, Bank, and improving IT. For stronger confirmation, additional sectors must move decisively above the 50 per cent mark, while weaker pockets begin showing sustained recovery. 

Indicator To Gauge Internal Strength 

This indicator measures the breadth of the broader market by tracking the number of Nifty 500 stocks registering fresh 52-week highs against those falling to fresh 52-week lows. A healthy market usually sees a steady rise in new highs, with limited stocks entering new-low territory. When both highs and lows increase together, it signals mixed participation and stock-specific divergence. As per the latest reading shown in the chart, the Nifty 500 advanced from 22,908.1 on July 8, 2026, to 23,263.9 on July 15, 2026, recording a gain of 1.55 per cent. During the same period, the number of stocks touching fresh 52-week highs increased from 1 to 3, while fresh 52-week lows also rose from 1 to 2. This suggests that the broader market has witnessed an improvement in upside momentum compared with the previous reading. The rise in fresh 52-week highs indicates that more stocks are participating in the recovery and testing higher price levels. However, the simultaneous increase in fresh 52-week lows shows that weakness remains visible in certain pockets of the market. Overall, the latest setup points to an improving but still uneven internal market structure. The expansion in new highs offers a positive signal, while the rise in new lows prevents the reading from turning decisively bullish. For broader strength to become more convincing, fresh highs must continue expanding, while fresh lows should remain firmly contained overall.

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