Over half of Nifty500 stocks trade above 200-DMA; analysts see more upside

Nifty 50 is back to 18,000, still half of Nifty 500 stocks trade below 200-DMA

After slipping nearly 12 per cent from its peak to 15,671 levels amid geopolitical concerns and crude oil surge in mid-January 2022, the Nifty 50 index reclaimed the 18,000 mark in trade on Monday. The strong momentum has taken nearly half of the Nifty500 stocks above their respective 200-day moving average (DMA). And if analysts are to be believed, there is room for more upside, albeit amid intermittent corrections.

The 200-DMA is an indicator that the investor community and trading experts recognize as the most relevant “trend pointer”. They strongly believe that stocks trading above the 200-DMA possess bullish strength