Nearly 50 per cent of the stocks that comprise the Nifty 50 are trading below their respective 200-DMAs.
The Nifty 50 index on Tuesday completed 100 trading days below its 200-day moving average (DMA) placed at 24,790 levels.
This is the highest number of days it has spent below this key technical indicator during the last 10 years (since April 2016), data shows.
The index had spent 159 trading sessions below this mark between August 20, 2015 and April 13, 2016.
The market fall during Covid in 2020 saw Nifty 50 fall below its 200-DMA and stayed below that level for 95 trading days.
Key Points
- The Nifty 50 has completed 100 trading sessions below its 200-day moving average, the longest such streak in a decade.
- The index has recovered over 8 per cent from April lows but remains nearly 3 per cent below its 200-DMA.
- Analysts believe narrowing distance from the 200-DMA indicates a recovery attempt, although the broader technical outlook remains cautious.
- Immediate support lies between 23,600 and 23,700, while resistance near 24,500 must be crossed for stronger upside momentum.
- Market experts recommend selective buying near support levels and trimming weak positions if the index rebounds towards 24,100-24,200.
Nifty 200-DMA Trend
The 200-DMA acts as one of the key technical indicators in determining a positive and negative trend.
Stocks or indices trading above this long-term moving average are considered trending up, and vice versa.
So far in calendar year 2026 (CY26), the Nifty touched a high of 26,373 on January 5 before falling to a low of 22,183 on April 2, slipping below its 200-DMA amid the geopolitical conflict in West Asia.
Since then, the index has rebounded 8.2 per cent to around the 24,000 mark, but remains nearly 3 per cent below its 200-DMA.
Recovery attempt
Analysts believe that despite the prolonged stay below the long-term 200-DMA, the index seems to be attempting a recovery as the gap between the current levels and the 200-DMA has narrowed.
"The Nifty is just around 3 per cent away from the 200-DMA compared to April's plunge this year when the fall stretched nearly 5 per cent below the key DMA levels. This suggests that a recovery attempt is underway," said Anand James, chief market strategist, Geojit Investments.
Nearly 50 per cent of the stocks that comprise the Nifty 50 are trading below their respective 200-DMAs.
Some prominent ones include Bharti Airtel, HDFC Bank, Hindustan Unilever, Infosys, ITC, Larsen & Toubro, Maruti Suzuki India, Reliance Industries, State Bank of India and Tata Consultancy Services.
Key Support Levels
From a technical perspective, the 23,700-23,600 zone continues to serve as the immediate support for Nifty 50, analysts say.
A decisive break below this, they believe, could accelerate selling pressure and drag the index towards the 23,500-23,300 support zone.
Technical Outlook Remains Bearish
"Overall, the near-term technical outlook stays bearish.
"A sustained move above 24,000 is essential to revive sentiment, while a break below 23,600 could trigger another leg of downside," said Ponmudi R, CEO, Enrich Money, a Securities and Exchange Board of India-registered online trading and wealth-tech firm.
Analysts believe the 100-DMA is a key indicator to watch out for where the index may find some support.
"The Nifty 50 recently moved above its 100-DMA at 23,846, which now acts as short-term support.
"We expect consolidation to continue within the 23,600-24,500 range, with key support at 23,072 for the short-to-medium term.
"A breakout above the 24,500 hurdle could trigger a rally towards 24,750-25,450 levels," Muthuselvaraj M, technical analyst at Mirae Asset Sharekhan said.
What Investors Should Watch
Shrikant Chouhan, head of equity research, Kotak Securities, suggests investors use the pullback in the markets, if any, to reduce weak long positions in the 24,100-24,200 zone.
"Fresh buying should be considered selectively on declines towards the 23,800–23,700 support area, where the risk-reward profile appears more favourable," he said.
Feature Presentation: Ashish Narsale/Rediff
