Homemarket Newsstocks News

    Nifty crosses 200 DMA amid broad-based rally as in-line Fed action boosts global equities

    Nifty crosses 200 DMA amid broad-based rally as in-line Fed action boosts global equities

    Nifty crosses 200 DMA amid broad-based rally as in-line Fed action boosts global equities
    Profile image

    By Sandeep Singh   IST (Published)

    Mini

    The Nifty50 has taken out five-, 10-, 20-, 50- and now 200-day moving averages in a bullish sign, but is yet to take out its 100-day reading. Across-the-board buying backed by strong global cues took the Nifty50 above its 200-day moving average on Thursday with the passage of the key event of the Federal Reserve's scheduled policy review.

    Across-the-board buying backed by strong global cues took the Nifty50 above its 200-day moving average on Thursday with the passage of the key event of the Federal Reserve's scheduled policy review.
    The US central bank's first pandemic-era rate hike, along expected lines, and upbeat commentary on the world's largest economy sent positive vibes to global financial markets.
    The 50-scrip benchmark is now above five out of six simple moving averages. A strong recovery in the market in the past few sessions helped the index take out its long-term moving average, currently placed at 16,997.
    The Nifty50 rose as much as 369.3 points or 2.2 percent to 17,344.6 at the strongest level of the day, coming within 36 points of its 100-day moving average.
    Period (No. of days)Simple moving averageSignal
    516,890.5Bullish
    1016,551.4Bullish
    2016,713.1Bullish
    5017,262.4Bullish
    10017,380.7Bearish
    20016,997.4Bullish
    Moving averages are technical indicators used to determine whether a stock or an index is likely to continue or reverse its current trend.
    "Most sectoral indices are contributing to the move and the broader indices also seeing traction in sync with the trend...  We feel sustainability above 17,350 in Nifty would pave for higher levels, else market participants should prepare for some consolidation," Ajit Mishra, VP-Research at Religare Broking, told CNBCTV18.com.
    He now sees a cushion for the index in the 16,800-17,000 zone and advises participants to focus on identifying sectors and stocks showing resilience.
    The Nifty Bank, however, is giving neutral signals. At the day's high, the banking index added 863.7 points or 2.4 percent to touch 36,611, still about 0.2 percent from its 200 DMA.
    Financial services counters have the maximum weightage of 36.1 percent in the Nifty50 universe, followed by IT (17.7 percent) and oil & gas (12.7 percent).
    PeriodSMASignal
    535,418.1Bullish
    1034,581.9Bullish
    2035,579.0Bullish
    5037,117.8Bearish
    10037,204.5Bearish
    20036,696.1Bearish
    Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
    arrow down

      Most Read

      Market Movers

      View All
      CompanyPriceChng%Chng