Over 80% of Sensex, Nifty50 stocks trade above their 200-DMA

The 200-DMA is considered one of the most relevant trend indicators by investors and traders. They believe that stocks and indices trading above this key level exhibit strength and are likely to rally

Nearly 83 per cent of the stocks that comprise the S&P BSE Sensex (25 out of 30) and 82 per cent of those that comprise the Nifty50 index (41 out of 50) are currently trading above their respective 200-day moving average (DMA), shows data.

Propelled by a strong rally in Reliance Industries (RIL) and HDFC Bank, the markets witnessed their best single-day run in two months earlier this week. The S&P BSE Sensex surged over 1,200 points on Monday, but snapped back on Tuesday to end at 71,150 levels. The 200-DMA for the 30-share index is placed at 65,875 levels.