80% Of Nse500 Shares Above Their 50-dmas! Where Is Stock Market Headed?

A full of 80 per cent of NSE500 scale constituents are trading supra their 50-day moving averages, a level that often signals beardown affirmative momentum. The database includes names specified arsenic Mahindra & Mahindra, Godrej Properties Ltd, Tata Technologies, Lupin Ltd, Mphasis, Tata Elxsi and DLF Ltd. Others included PVR Inox Ltd, LT Foods, Redington Ltd, Larsen & Toubro, Info Edge and KEC International among others, arsenic per a publically disposable information pinch Trendlyne.

"This displacement suggests that value action and investor sentiment are turning bullish crossed a wide group of stocks, not conscionable nan scale heavyweights," said Akshay Chinchalkar, Head of Research astatine Axis Securities successful a note. He noted that specified a setup has occurred 41 different times successful nan past 10 years. 

Chinchalkar said 75 per cent of nan clip nan NSE500 scale was higher complete nan adjacent 20 days. The mean return connected winning trades was 2.8 per cent. The mean nonaccomplishment connected losing trades was 2 per cent. Overall, nan mean return stood astatine 1.6 per cent, nan Axis Secuities' caput of investigation said. 

"Keep an oculus connected your positions and watch for breakout opportunities crossed nan broader market. This could beryllium a bully clip to reassess your strategy aliases adhd to existing winners," Chinchalkar said.

Elgi Equipments Ltd, Netweb Technologies, UNO Minda Ltd, Sai Life Science Ltd, HCL Technologies Ltd, Route Mobile Ltd, KNR Constructions Ltd, Honeywell Automation and Usha Martin Ltd were immoderate of nan stocks breaching their 50-day moving averages today. 

Nifty outlook
As acold arsenic nan benchmark Nifty is concerned, Rupak De, Senior Technical Analyst astatine LKP Securities said while nan sentiment remains upbeat arsenic nan scale continues to waste and acquisition supra nan erstwhile plaything high, nan statement of a 'Hanging Man' shape connected nan regular floor plan serves arsenic a informing for those holding nett agelong positions. 

"Additionally, nan RSI is connected nan verge of confirming a antagonistic divergence. Going forward, a diminution towards nan 24,000–23,900 area appears apt if nan Nifty slips beneath 24,300. On nan higher side, guidance is seen astatine 24,450–24,500," he said.

Published on: Apr 23, 2025 5:22 PM IST