Set for pre-Diwali run? 72% of Nifty, 63% of Nifty 500 stocks above 200-DMA

Data shows that as of date 36 out of Nifty 50 shares, and 314 out of Nifty 500 stocks were trading above the long-term 200-Day Moving Average.

The markets seem to be set for a pre-Diwali run with 72 per cent of the stocks (36 scrips) that comprise the Nifty 50 index, and 63 per cent of the counters (314 scrips) that comprise the Nifty 500 index trading above their respective 200-day moving averages.  Technically, the 200-DMA is considered as the key indicator to determine the bullish and bearish trend. A stock or an index that is trading above the 200-DMA, which is also considered as the long-term moving average, is said to be in a bullish (positive) trend and vice versa.  At the index level, the Nifty 50 currently trading at 25,088 levels is 4 per cent above its 200-DMA, which stands at 24,128 levels; while the Nifty 500 currently at 23,210 levels is also 4.4 per cent above its 200-DMA, data shows.  ALSO READ | GST reforms a mini budget; market risk greater in mid, smallcaps: S Naren  Both the Nifty 50 and the Nifty 500 indices are seen quoting above their respective 200-DMAs, since May 12, 2025.  Thus far in fiscal 2025-26 (FY26), the Nifty 50 has rallied 6.7 per cent, while the Nifty 500 index has gained 8.8 per cent, according to ACE Equity data. 

 

 

Stocks trading above 200-DMA

  Meanwhile, BSE, DLF, Paytm, Apollo Tyres, SAIL, Godfrey Phillips, Glenmark Pharma, Hyundai Motor, Hindalco, Bharat Electronics, LIC, Ashok Leyland, InterGlobe Aviation, MRF, Yes Bank and Voda Idea are some of the prominent stocks that are above their respective 200-DMA in the broader market.  HDFC Bank, ICICI Bank, Reliance Industries, Larsen & Toubro, Maruti Suzuki, Hindustan Unilever, State Bank of India (SBI), Tata Steel, Bharti Airtel and Eternal are some of the notable names in the Nifty 50 pack that are currently above their respective 200-DMAs, data shows. 

Market Strategy

  Given the run up, analysts suggest investors remain selective. Market liquidity, according to G Chokkalingam, founder and head of research at Equinomics Research, is becoming tight in the secondary markets due to continued selling of Indian equities by the foreign portfolio investors (FPIs), and selling by the Indian promoters and continuation of robust IPOs.  “As a strategy, we advocate around 40 per cent allocation to large cap stocks; 5 per cent allocation to gold ETFs (exchange traded funds) and the balance 55 per cent to quality (management / balance sheet & valuation comfort) small-and mid-cap stocks. Go light on perception-driven over-valued stocks as such themes are expected to fizzle out in the short-term,” he advises.  ALSO READ | Additional rate cuts may offer diminishing returns: Vetri Subramaniam  Technically, on the weekly chart, the Nifty 50 has formed a bullish candle, and on the daily and intraday charts, it is maintaining a higher low, which supports further upside from the current levels, analysts said.  The bullish trend is likely to continue as long as the Nifty / Sensex trade above 25,850 / 81,400 levels. On the upside, 25,150–25,200/82,200-82,400 would act as immediate resistance. A successful breakout above 25,200/82,400 could push the market higher towards 25,500–25,550/83,300–83,500, analysts said.  “On the other hand, below 24,850/81,400, the uptrend could weaken. If the market declines below this level, traders could consider exiting their longs. The strategy should be to buy at 25,000 and at 24,900 with a final stop loss at 24,850. Resistance exists at 25,150 and 25,250 for the Nifty,” said Shrikant Chouhan, Head Equity Research at Kotak Securities.