Nifty50 spends 100 trading days below 200-DMA, 2nd longest in a decade

The NSE Nifty 50 index has been quoting below its long-term 200-day moving average since February 27, 2026.

The Nifty 50 index, on Tuesday, completed 100 trading days below its 200-day moving average (DMA), placed at 24,790 levels. This is the second most number of days it has spent below this key technical indicator in the last 10 years (since April 2016), data shows.  The index had spent 159 trading sessions below this mark between August 20, 2015 and April 13, 2016. The market fall during Covid in 2020 saw Nifty 50 dip below its 200-DMA and stay below that level for 95 trading days between February 26, 2020 and July 16, 2020, data shows.    The 200-DMA acts as one of the key technical indicators in determining a positive and negative trend. Stocks or indices trading above this long-term moving average are considered as likely trending up, and vice versa. 

 

 

  Thus far in calendar year 2026 (CY26), the Nifty touched a high of 26,373 on January 5 before falling to a low of 22,183 on April 2, slipping below its 200-DMA amid the geopolitical conflict in West Asia. Since then, the index has rebounded 8.2 per cent to around the 24,000 mark, but remains nearly 3 per cent below its 200-DMA. 

Recovery attempt

  Analysts believe that despite the prolonged stay below the long-term 200-DMA, the index seems to be attempting a recovery as the gap between the current levels and the 200-DMA has narrowed.  “The Nifty is just around 3 per cent away from the 200-DMA, when compared to April's plunge this year when the fall stretched nearly 5 per cent below the key DMA levels, suggesting that a recovery attempt is underway,” says Anand James, chief market strategist, Geojit Investments.  ALSO READ | Bulls vs Bears: This momentum indicator explains why Nifty lacks direction  Nearly 50 per cent of the stocks that comprise the Nifty 50 are trading below their respective 200-DMAs. Some prominent ones include Bharti Airtel, HDFC Bank, Hindustan Unilever, Infosys, ITC, Larsen & Toubro, Maruti Suzuki India, Reliance Industries, State Bank of India (SBI) and Tata Consultancy Services (TCS).  From a technical perspective, the 23,700–23,600 zone continues to serve as the immediate support for Nifty 50, analysts suggest. A decisive break below this, they believe, could accelerate selling pressure and drag the index towards the 23,500–23,300 support zone. 

 

  “Overall, the near-term technical outlook stays bearish. A sustained move above 24,000 is essential to revive sentiment, while a break below 23,600 could trigger another leg of downside,” said Ponmudi R, CEO of Enrich Money, a SEBI-registered online trading and wealth-tech firm.  From an overall market sentiment perspective, analysts believe the 100-DMA is a key indicator to watch out for where the index may find some support.  “The Nifty 50 recently moved above its 100-DMA at 23,846, which now acts as short-term support. We expect consolidation to continue within the 23,600–24,500 range, with key support at 23,072 for the short-to-medium term. A breakout above the 24,500 hurdle could trigger a rally toward 24,750–25,450 levels," Muthuselvaraj said.  As a strategy, Shrikant Chouhan, Head Equity Research, Kotak Securities suggests investors use the pullback in the markets, if any, to reduce weak long positions in the 24,100–24,200 zone. “Fresh buying should be considered selectively on declines toward the 23,800–23,700 support area, where the risk-reward profile appears more favorable,” he said.  Disclaimer: Views and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers' discretion is advised.