63% Of Nifty 500 stocks below long-term avg

Rex Cano/Business Standard

Prolonged weakness in the benchmark indices seems to have taken a toll on the overall market breadth, with a vast majority of the stocks now trading below the long-term moving average.

The 200-Day Moving Average (DMA) is said to be the long-term moving average, and stocks trading above the same are said to be holding a positive (bullish) bias and vice versa.

As of Friday, a vast majority  -- 316 stocks or 63 per cent of the Nifty 500 stocks had dropped below this key moving average.

Similar is the case with index frontliners 31 out of the Nifty 50 stocks were seen trading below the 200-DMA.

In the case of the Nifty MidCap 150 and SmallCap 250 indices -- 95 out of the 150 midcaps and 144 out of the 250 smallcaps had slipped below the long-term threshold.

The NSE Nifty 50 index had dipped to a low of 23,344, and was down 0.8 per cent at the lowest point of the day.

When compared with its long-term moving average, the index has been quoting below the same for the last five trading sessions. The Nifty 200-DMA now stands at 23,907.

According to Sameet Chavan, Head Research, Technical and Derivative -- Angel One, the Nifty is seen testing crucial support around 23,500- 23,450 levels, which has served as a solid base since December and aligns with the lower boundary of a 'Falling Channel' pattern on the hourly chart.