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 remained unchanged between July 15, 2026, and July 22, 2026, indicating that market breadth failed to improve during a weak week for the benchmark index. The percentage of Nifty 50 stocks trading above their 200-DMA stayed at 46 per cent, while the share of stocks trading below this long-term average remained at 54 per cent. During the same period, the Nifty declined by 0.55 per cent, suggesting that the fall in the index did not lead to any further deterioration in overall participation. However, with fewer than half of the index constituents trading above their long-term trend indicator, the broader market structure continues to remain cautious and lacks decisive upward strength. At the stock level, JSW Steel and Mahindra & Mahindra crossed above their 200-DMA, generating positive long-term trend signals. On the other hand, Axis Bank and HDFC Bank slipped below their 200-DMA, reflecting renewed weakness among major banking constituents. Overall, the latest reading points to a stable but subdued breadth setup, with positive and negative crossovers balancing each other. For the market structure to improve meaningfully, the percentage of stocks above the 200- DMA must rise beyond 50 per cent, while fresh breakdowns among heavyweight constituents should remain limited.

SECTORAL SENTIMENT INDICATOR

The sectoral 200-DMA breadth as of July 22, 2026, reflects a mixed and slightly weaker market structure, with participation narrowing in some previously strong sectors even as selective recovery emerged elsewhere. Nifty Pharma remained the strongest segment, with 85 per cent of its constituents trading above the 200-DMA, despite a 10 percentage point decline from the previous week. Nifty Realty followed with a breadth reading of 80 per cent, although it also weakened by 10 percentage points. Nifty Auto displayed relatively healthy breadth, with 66.67 per cent of its stocks holding above the long-term moving average after improving by 6.67 percentage points. Nifty Media also strengthened, rising by 10 percentage points to 60 per cent. Nifty IT remained unchanged at 50 per cent, placing the sector exactly at the neutral threshold between positive and weak long-term participation. The sharpest deterioration was recorded in Nifty Private Bank, where the proportion of stocks above the 200-DMA declined by 30 percentage points to 60 per cent. Nifty Bank also weakened significantly, falling by 16.67 percentage points to 41.67 per cent, while Nifty Financial Services slipped by 10 percentage points to 40 per cent. These readings indicate that participation across the broader financial Nifty PSU Bank recorded the strongest recovery, rising by 25 percentage points to 33.33 per cent. Nifty Metal improved by 13.33 percentage points to 33.33 per cent, while Nifty FMCG advanced by 6.67 percentage points to the same level. Despite these gains, all three sectors remain below the 50 per cent mark. Overall, the latest data points to an uneven sectoral breadth setup. Pharma, Realty, Auto, and Media continue to show relatively stronger structures, but declining participation in banks and private lenders remains a concern. A broader improvement would require financial sectors to recover above the 50 per cent threshold while gains in PSU Bank, Metal, and FMCG become more sustained.space has narrowed considerably. Among the weaker sectors,

Indicator To Gauge Internal Strength

This indicator assesses the breadth of the broader market by comparing the number of Nifty 500 stocks reaching fresh 52-week highs with those slipping to fresh 52-week lows. A strong market generally records an expanding number of new highs and only a limited increase in new lows. When highs and lows remain close, it reflects narrow participation and stock-specific divergence. According to the latest reading in the chart, the Nifty 500 declined from 23,263.9 on July 15, 2026, to 23,145.1 on July 22, 2026, registering a fall of 0.51 per cent. Over the same period, the number of stocks touching fresh 52-week highs eased from 3 to 2, while fresh 52-week lows remained unchanged at 2. This indicates that the broader market lost some upward momentum during the week. The decline in fresh 52-week highs suggests that fewer stocks were able to sustain strength and move into higher price territory. At the same time, the absence of any rise in fresh 52-week lows shows that selling pressure has not broadened significantly across the market. Overall, the latest setup points to a neutral to mildly cautious internal market structure. Equal readings for fresh highs and lows indicate balanced but weak participation, with neither bulls nor bears gaining clear control. For breadth to improve decisively, the number of fresh highs must expand consistently, while fresh lows should remain contained or decline further.

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