Bear grip getting stronger? Over 50% Nifty F&O stocks trade below 200 DMA

The 200-day moving average (DMA) is one of the important indicators to ascertain buy or sell trends.

Out of 150 stocks traded in the Nifty F&O segment, 76 stocks, at present, are trading below their 200-day moving average (DMA). In the Nifty 500 segment, around 268 stocks are trading below it while the benchmark indices, S&P BSE Sensex and Nifty50 are hovering around the same moving average.
 
As the stocks slip below the most crucial moving average i.e 200 DMA, the trend appears to turn weak going ahead. Out of the 76 stocks of Nifty F&O segment, State Bank of India (SBI), Axis Bank, Housing Development Finance Corporation (HDFC), IndusInd Bank, Bharat Forge and Escorts have declined after a robust rally in the benchmark indices recently.

Among the 268 stocks in the Nifty 500 segment, 54 stocks recently climbed their 200 DMA but failed to sustain the upside momentum. This list includes Ajanta Pharmaceuticals, Bandhan Bank, BSE, DCB Bank, Godrej Agrovet Ltd, ICRA Ltd, IDFC Ltd, Oberoi Reality, and Torrent Pharmaceuticals, among others.

The trend, broadly, denotes the weaker 'market breadth' and if this continues for a few more sessions, it may affect the overall sentiment of the market.