SENTIMENT INDICATORS

200-DMA INDICATOR  [EasyDNNnews:PaidContentStart]

The 200-day moving average setup improved between July 22, 2026, and July 29, 2026, signalling a recovery in market breadth during the week for the benchmark index. The percent age of Nifty 50 stocks trading above their 200-DMA rose from 46 per cent to 58 per cent, while the share trading below this long-term average declined from 54 per cent to 42 per cent. During the same period, the Nifty gained 1.06 per cent, indi cating that the rebound was supported by participation across heavyweight constituents. With more than half of the index stocks now trading above their long-term trend indicator, the broader market structure has turned constructive and reflects improving strength. At the stock level, HCL Technologies, Jio Financial Services, Kotak Mahindra Bank, Maruti Suzuki, SBI Life Insurance and Tata Consultancy Services crossed above their 200-DMA, generating positive long-term trend signals. Notably, no Nifty 50 stock crossed below its 200-DMA during the peri od, highlighting the absence of fresh long-term breakdowns. 

Overall, the latest reading points to a meaningful improvement in breadth, with positive crossovers dominating the setup. For this recovery to strengthen further, the percentage of stocks above the 200-DMA should remain above 50 per cent, while heavyweight stocks must continue holding their support levels. 

SECTORAL SENTIMENT INDICATOR 

The sectoral 200-DMA breadth as of July 29, 2026, reflects a broad improvement in market structure, with participation strengthening across most sectors. Nifty Pharma remained the strongest segment, with 95 per cent of its constituents trading above the 200-DMA after rising by 10 percentage points from the previous week. Nifty IT recorded the sharpest improvement, climbing by 30 percentage points to 80 per cent, while Nifty Realty remained unchanged at 80 per cent. Nifty Auto displayed healthy breadth, with 73.33 per cent of its stocks holding above the long-term moving average after improving by 6.67 percentage points. Nifty Private Bank and Nifty Media also strengthened, with both sectors rising by 10 percentage points to 70 per cent. These readings indicate that participation has expanded across technology, automobiles, private lenders and media stocks. The broader financial space also showed a recovery. Nifty Financial Services rose by 20 percentage points to 60 per cent, while Nifty Bank advanced by 16.67 percentage points to 58.33 per cent. Both indices moved above the 50 per cent threshold, signalling that a majority of their constituents are now trading above the 200-DMA and supporting a healthier long-term setup. Among the weaker sectors, Nifty FMCG posted a recovery, rising by 13.33 percentage points to 46.67 per cent, although it remained marginally below the neutral mark. Nifty Metal was unchanged at 33.33 per cent. Nifty PSU Bank was the only sector to weaken, falling by 8.33 percentage points to 25 per cent, making it the weakest breadth reading among the sectors under review. Overall, the data points to a constructive sectoral breadth setup, with improvements visible across most segments. Pharma, IT, Realty, Auto, Private Bank and Media remain the strongest areas, while the recovery in banking and financial services adds support to the broader market. Sustained improvement would require FMCG and Metal to move above 50 per cent, while PSU Bank needs a sharper revival. 

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 falling to fresh 52-week lows. A healthy market generally records an expansion in new highs and a limited number of new lows. When fresh highs rise and lows contract, it signals broader participation and improving market strength. According to the latest reading in the chart, the Nifty 500 advanced from 23,145.1 on July 22, 2026, to 23,352.6 on July 29, 2026, registering a gain of 0.90 per cent. Over the same period, the number of stocks touching fresh 52-week highs increased from 2 to 5, while fresh 52-week lows declined from 2 to zero. This indicates that the broader market regained upward momentum during the week. The rise in fresh 52-week highs suggests that more stocks were able to sustain strength and move into higher price territory. At the same time, the complete absence of fresh 52-week lows shows that selling pressure remained contained and did not spread across the wider market. Overall, the latest setup points to a constructive internal market structure. The improvement in new highs, combined with no stocks recording fresh lows, indicates that buyers gained control and market participation strengthened. For breadth to improve further, the number of fresh highs should continue expanding, while fresh lows must remain limited or stay close to zero.

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