75% of Nifty50 stocks trade below 200-DMA; look weak on the charts

Tech Mahindra and Wipro have tumbled over 30 per cent, while Apollo Hospitals Enterprise and Dr. Reddy's Laboratories have plummeted 22 per cent so far in calendar year 2022 (CY22)

The sharp sell-off in Indian equity markets over the past few weeks has pulled 38 stocks, or 75 per cent of the scrips that comprise the Nifty 50 index below their respective 200-day moving average (DMA).

 

The 200-DMA is an indicator that the investor community and trading experts recognize as the most relevant trend indicator. Stocks trading above the 200-DMA, traders believe, possess an underlying bullish strength and expect them to rally