Sentiment Indicators

200-DMA INDICATOR 
The 200-DMA indicator measures the percentage of Nifty 50 stocks trading above or below their 200-day simple moving average, providing insight into long-term market trends. Currently, 30 per cent of Nifty 50 stocks are above their 200- DMA, while 70 per cent remain below, reflecting a 6 per cent shift from last week. This week, BEL, SUNPHARMA and ULTRACEMCO closed above their 200-DMA, while no stocks moved below this key level. This week, the Nifty 50 has retested a critical resistance level, marking the previous peak from two months ago, where the index faced sharp selling, dropping nearly 8 per cent in just 27 sessions. Its current position around this level signals caution. A breakout above the 24,100 zone could confirm a strong upward move, shifting the market sentiment from bearish to bullish. Additionally, a rise in home sales data supports a positive market outlook. Key levels to watch include support at 22,650 and resistance around 24,100. The Nifty 50 settled at 23,598.90, reflecting a 2 per cent decline and falling below its 200-day moving average of 24,081.03.



KOTAKBANK and BHARTIARTL were among the Top Gainers, whereas INDUSINDBK recorded the steepest loss over the past five sessions. In the short term, resistance is expected to be around 24,100, while support is expected to be near 22,650. 

SECTORAL SENTIMENT INDICATOR
This indicator evaluates the number of stocks within sectoral indices trading above or below their 200-day moving averages, offering insights into sector trends. Currently, the Nifty Financial Services, Bank Nifty, and Private Banks sectors are trading above their 200-DMA. In contrast, sectors such as IT, Metal, Pharma, Realty, PSU Banks, Auto, FMCG, and Media remain below their 200-DMA, indicating weakness across these segments. This week, the markets witnessed significant sectoral movements. Nifty IT recorded the highest increase of 60 per cent, followed by Nifty FMCG, which rose 13.33 per cent. On the other hand, several sectors faced declines. Nifty PSU Bank saw the most significant drop of 91.67 per cent, followed by Nifty Metal and Nifty Realty, which both declined by 80 per cent. Nifty Pharma and Nifty Media decreased by 60 per cent each, while Nifty Bank fell 58.33 per cent. Nifty Financial Services dropped 55 per cent, and Nifty Private Bank declined 50 per cent. Nifty Auto recorded a 46.67 per cent decrease. Since last Wednesday, the Nifty Midcap 150 and Nifty Smallcap 250 have lagged behind the Nifty 50, gaining 1.39 per cent and 1.10 per cent, respectively, while the Nifty 50 rose by 2.53 per cent.



Investors should focus on strong sectors like Metal, Financial Services, and top Private Sector Banks for short-term bullish trades. Meanwhile, traders are advised to avoid weaker segments such as IT, Media, and Realty in the near term. 

Indicator To Gauge Internal Strength
This indicator measures the market's internal strength. A rising number of Nifty 500 stocks reaching 52-week highs and fewer hitting 52-week lows signals a bullish trend, while the reverse suggests bearish conditions. This week, the average ratio of stocks making new 52-week highs to those hitting 52-week lows was 1:0, compared to 1:4 last week. On average, one stock reached a fresh 52-week high, whereas almost none recorded new 52-week lows, a decline from four in the previous week.Over the past week, the Nifty 500 and Nifty 50 followed a similar trajectory, gaining 1.97 per cent and 2.53 per cent, respectively. Both indices remain below their 200-day moving averages. From a broader perspective, the market continues its downtrend as the lower high and lower low pattern persists. A breakout above 21,900 would shift the market structure from bearish to bullish. Key levels to watch include support around 20,550 and resistance near 21,900. Over the past five sessions, the Nifty 500 has outperformed the Dow Jones Industrial Average (DJI) and the S&P 500. This week, the Nifty 500 gained 1.97 per cent, whereas the DJI and S&P 500 saw modest increases of 1.17 per cent and 0.50 per cent, respectively. Despite this, market breadth remains weak, reflecting bearish sentiment. The number of stocks hitting 52-week lows fell to zero from four last week, while new 52-week highs stayed at one.



Foreign institutional investors (FIIs) infused Rs 21,300 crore into the market, while domestic institutional investors (DIIs) engaged in aggressive selling, offloading Rs 9,700 crore. Key levels to watch include support at 20,550 and resistance near 21,900. 

(Closing price as of March 26, 2025)