NIFTY50 trading 6.5% above its 200-DMA, sectors like IT, Pharma, and Auto trades above 200-DMA, whereas PSU Bank Index witnessed a death cross

Last month, the NIFTY50 and SENSEX hit milestones of 26,200 and 85,900, respectively. However, due to uncertainty with respect to the geopolitical situation, the benchmark indices plummeted by more than 5% from their peak.

Currently, NIFTY50 is trading near the 24,800 level below its 20-day and 50-day moving averages. But still, they are trading 6.5% above the 200-day moving average, suggesting that the long-term uptrend of NIFTY50 is still intact. Among the 50 constituents of the NIFTY50, 80% or 40 stocks were trading above their respective 200-day moving average on October 17, 2024.

The percentage of stocks trading above their 200-daily moving averages (DMAs) is the popular breadth analysis commonly used to understand whether the underlying sector/index is in a bullish or bearish stand. Below is the chart of the NIFTY50 index along with a chart that shows the percentage of stocks above 200-day DMA.

Sector-wise percentage stocks trading above 200-DMA

Nifty IT - All stocks trading above their 200–DMA

All the constituents from Nifty IT are trading above their long-term moving average of 200-DMA. As shown in the chart above 100% of stocks are above their 200-DMA, showing strong market breadth. After TCS Q2FY25 earnings, all eyes will be on Infosys which is set to announce its earnings on October 17, 2024.

Nifty Healthcare Index - 100% of stocks trade above their 200-DMA

The Nifty Consumer Durable index is showing high strength with all of its constituents trading above 200-DMA. The index has corrected 2% from the all-time high.

Nifty Pharma - 95% of stocks trading above their 200-DMA

The Nifty Pharma index has gained about 38.3% on a YTD basis and is among the top performers in 2024. 95% of constituents or 19 out of 20 stocks are trading above their 200-DMA.

Nifty Financial Services - 85% of stocks trading above their 200-DMA

Nifty Financial Services index is trading at 6.3% down from its all-time high. This sharp decline from its peak has pushed the index below its 20 and 50 DMA. That said, the index is still trading above its 200-DMA, with 85% or 17 out of 20 constituents trading above their respective 200-DMA.

Nifty Auto - 80% of stocks trading above their 200-DMA

Nifty Auto Index is down 9.72% from its all-time high which was hit in September. With this fall, the index has slipped below its 20 and 50-DMA, but it is trading 8% above its 200-DMA level. Among its 15 constituents, 12 or 80% of constituents are still trading above 200-DMA.

Nifty FMCG - 73.33% of stocks trading above their 200-DMA

The nifty FMCG index has fallen 6.5% from its peak, slipping below the 20 and 50 DMA. There 73.33% or 11 out of 15 constituents are still trading above 200-DMA.

Nifty Oil & Gas - 73.33% of stocks trading above their 200-DMA

The Nifty Oil & Gas Index has been trading 20- and 50-DMA recently and the index is approaching its 200-DMA. Among its 15 constituents, 11 or 73.33% of constituents are still trading above 200-DMA.

Nifty Metal - 73.33% of stocks trading above their 200-DMA

Nifty Metal Index recently made a new all-time high and is trading above both the 50 and 200-DMA with bullish strength as its 73.33% or 11 constituents are trading above their respective 200-DMA.

Nifty Consumer Durable - 73.33% of stocks trading above their 200-DMA

The Nifty Consumer Durable index is also in a strong uptrend over the charts but is currently corrected by a few points below 20-DMA. Out of 15 constituents, 11 or 73.33% of constituents are trading above 200 DMA.

Nifty Realty - 70% of stocks trading above their 200-DMA

The Nifty Realty index witnessed a sharp decline on October 17, 2024. However, the rally from the lows of March 2024, has helped the majority of the stocks to trade above their 200-DMA. As many as 70% of the stocks from the realty pack were trading above their 200-DMA.

Nifty Private Bank - 50% of stocks trading above their 200-DMA

Nifty Private Bank index witnessed a fall of 6.5% from its all-time high in October following the correction the index has slipped below its 20 and 50-DMA. Last week the index bounced from near 25,100 level to 50-DMA but declined again. Despite the correction, 50% or 5 constituents of the index are trading above their respective 200-DMA - namely City Union Bank, Federal Bank, HDFC Bank, ICICI Bank and Kotak Mahindra Bank.

Nifty Media - 50% of stocks trading above their 200-DMA

As of October 17, the Nifty Media Index hovering near the 200-DMA with 50% or 5 stocks that are trading above the 200-DMA. Those are Nazara Technologies, PVR INOX, Saregama India, Sun TV Network and Tips Music.

Nifty Bank - 50% of stocks trading above their 200-DMA

Nifty Bank is trading above its long-termlong-term moving average of 200-DMA. Among the constituents, only 50% or 6 out of 12 banking stocks traded above their respective 200-DMA. The last time Nifty Bank traded below 200-DMA was on February 12, 2024.

Nifty PSU Bank - Death Cross has resulted in most of the stocks trading below its 200-DMA

In the technical chart of the Nifty PSU Bank Index, a death cross is witnessed (a death cross occurs when a short-term moving average crosses below the long-term moving average). The index has already moved below all important moving averages(20, 50 and 200-DMAs). Currently, there is only one stock (State Bank of India) from the index that is trading above 200-DMA out of 12 constituents. Index posted the biggest one-week drop since early May.