17 of the 30 Sensex stocks are now below their 200-day moving average

The benchmark Sensex is hovering around its lifetime high, but more than half of its components are trading below their long-term average prices. According to data, 17 of the 30 Sensex stocks are now below their 200-day moving average (200-DMA). This indicates that the index gains are driven by few stocks, while most others reel under pain. The Sensex has gained about 7 per cent in 2018.

The rally in the index is largely on account of the strong performance by three stocks—Tata Consultancy Services (TCS), Reliance Industries and HDFC Bank. These three blue-chip stocks have contributed to bulk of the