68% of Nifty50 stocks cross 10-year levels of 200-DMA

More stocks are contributing to the current market rally, which is a sign of improvement in the market breadth. The proportion of stocks trading above their respective 200-day moving averages (DMA) in the Nifty 50 and the BSE 200 indices reached to 68 per cent and 60.2 per cent compared with their 10-year average of 58.6 per cent and 61.2 per cent, respectively. However, the current reading is 0.8 per cent lower than the fiveyear average for the BSE 200 index.The 200-DMA is an important support level for traders and determines profitable entry and exit for specific securities.Earlier, the percentage of stocks of trading above 200-DMA for the BSE 200 had dropped to just 25.8 per cent on February 19 — the recent low for the market. The reading has been consistently improving with indices gaining over 10 per cent since then. 68680845 As a result of rising stock participation, the share of top 10 stocks in the gains of BSE 200 has fallen to 36.5 per cent from 59.8 per cent in the previous rally between March and August 2018.In January 2019, over half of the gains of the sample of top 100 companies ranked based on market capitalisation was contributed by top 15 companies. This was the highest level of concentration since December 2008. 68680733 68680456 68671204

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