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Written by Market Analyst

Category: Stock Market

Published: 12 July 2008

Last Updated: 23 March 2021

 

Technical Analysis of Stock Market Trend in India

 

NSE Nifty Next 50 (Nifty Junior) 

22 March 2021
Nifty Next Index is trading above 50 day and 200 day moving average.
Leaders: ACC, Adani Green, Ambuja Cements, Tata Consumer, Adani Transmission, Piramal Enterprises, GIC.
Laggards: PNB, United Spirits, Abbott India, Petronet LNG, Torrent Pharma, Alkem Laboratories.
Bullish Sectors: Cement, Consumption.
Bearish Sectors: Pharma, PSU.

NSE Nifty 50

12 February 2021
Nifty is trading above 50 day and 200 day moving average.
Market has moved above after the correction due to Covid-19.
Nifty has dropped from the record high of 12400 in Jan to 7500 in Mar 2020.
Nifty has made a new high of 15250 in Feb 2021.
Nifty is moving in the range of 14000 to 16000 for short-term.
Leading world markets are also performing well after recovery.

Leaders: Bajaj Finance, HDFC, ICICI Bank, Adani Ports, Bajaj Finserv, Grasim Industries.
Laggards: Coal India, Indian Oil Corporation, NTPC, ONGC, HUL.
Bullish Sectors: Finance, Bank.
Bearish Sectors: PSU, Energy.
Stocks with stable up move over longer period
• HDFC Bank, Infosys, TCS.

S&P BSE Sensex 30

22 January 2021
Sensex is moving above 50 day and 200 day moving average.
Sensex from a high of 21216 had moved below to a low of 7697 in 2008. 
Sensex moved up to 21108 in 2010 and corrected to 15135 in Dec 2011. 
Sensex hit a new peak of 30024 in Mar 2015 and corrected to touch a low of 22494 in Feb 2016.
Sensex made another high of 42273 in Jan 2020 and low of 25638 in Mar 2020.
Sensex made a new high of 50184 in Jan 2021 and is moving in a band of 52000 to 46000 for short term.

Market movement will depend on FII inflow and strength of rupee against the dollar.
Decrease in crude oil price will be a gain for India but stress is seen in the Gulf region.
The long-term trend of the market has turned up after the correction due to Covid-19.
There will be huge pressure on the economy to take care of the health infrastructure.

Leaders: Bajaj Auto, TCS, UltraTech Cement, Maruti Suzuki, Infosys, M&M. 
Laggards: NTPC, ONGC, IndusInd Bank, ITC, SBI Axis Bank.
Bullish Sectors: Auto, IT.
Bearish Sector: Bank, PSU.
Stocks with stable up move over longer period 
• HDFC Bank, HDFC, HUL.

Nifty Midcap 50

11 December 2020
Nifty Midcap 50 Index is trading above 50- and 200-day moving average. 
All the 50 Nifty Midcap stocks are trading above 200-dma. 
That means 100% of Nifty Midcap stocks are trading above 200-dma. 
There is interest in the Midcaps stocks recently.

Leaders: SAIL, Jubilant Foodworks, Godrej Properties, Bharat Forge, Apollo Tyres, Balkrishna Industries.
Laggards: M&MFIN, Union Bank, Indiabulls Housing, Canara Bank, RBL Bank, BHEL. 
Bullish Sectors: Metals, Auto ancillaries. 
Bearish Sectors: PSU Banks, Bank, Finance.

World leading markets

4 December 2020
Top world leading market index outperformers: BSE Sensex, Nifty 50, NASDAQ Composite, Kospi, Nikkei 225.
Top world leading market index underperformers: FTSE 100, Hang Seng, CAC 40.
Markets in USA and India hit all-time highs after the Covid-19 correction.
Other leading world markets are trading above 200-dma. 

 

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• Triggers for the market • 

• FII inflow
• Liquidity in the system
• New tax code
• Inflation
• Corporate results
• RBI fiscal policy
• Outflow to primary  market
• Interest rate
• Crude oil price
• Union Budget

General election results
Markets liked the General election results in 2009 and Sensex jumped up by 2000 points. Markets also hit the upper circuit for the first time.
Markets liked the General election results of 2014 and Sensex jumped up by 1500 points. The markets have moved into a new bull orbit.

Monsoon
Good monsoon is important for agriculture.
Agriculture gives good support to the economy.
For 2014 monsoon is expected to be below normal.
Watch out for food inflation, general inflation and interest rate.

South west monsoon rainfall as % of long period average

2007	106
2008	98
2009	78
2010	102
2011	101
2012	92
2013	106
2014	95 forecast
[Source: dna dated 25 April 2014]
2018	91

 

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Sector or Industry Technical Trend

 

Realty Index Stocks at NSE

26 February 2021
Nifty Realty Sector Index is trading above 50 day and 200 day moving average.
Out of 10 Nifty Realty stocks 9 are trading above 200-dma.
So, 90% of Realty stocks are trading above 200-dma.
Realty sector is expected to do well with more investments in the rural housing.
This sector is sensitive to interest rate.
Outperformers: Godrej Properties, Brigade Enterprises, Indiabulls Real Estate, DLF.
Underperformers: Omaxe

Private Bank NSE

24 February 2021
Nifty Private Bank index is trading above 50 day and 200 day moving average.
All 10 Nifty Private Bank Sector Index stocks are trading above 200-dma.
That means 100% of Private Bank Sector stocks are trading above 200-dma.
Most of the time Private Banks perform better than PSU Banks.
Buoyant economy will improve the fortunes of the banking sector.

Outperformers: IDFC First Bank, HDFC Bank, ICICI Bank, Axis Bank.
Underperformers: City Union Bank, RBL Bank, Bandhan Bank.

PSU Bank – NSE

5 February 2021
Nifty PSU Bank index is trading above 50 day and 200 day moving average.
Out of 12 Nifty PSU Bank index stocks 11 are trading above 200-dma.
That means 92% of PSU Bank Sector stocks are trading above 200-dma.
Private Banks are outperforming and PSU Banks are attempting catchup.
Mounting non-performing asset (NPA) is a big problem for this sector.
Interest rate cut by RBI will boost this sector.

Outperformers: Bank of Maharashtra, State Bank of India, Indian Overseas Bank, Jammu & Kashmir Bank.
Underperformers: Union Bank of India, PNB, Central Bank of India.

Pharmaceutical – NSE

1 February 2021
Nifty Pharma Sector Index is trading above 200 day moving average.
Out of 10 Nifty Pharma Index stocks 7are trading above 200-dma.
That means 70% of Pharmaceutical Index stocks are trading above 200-dma.
Due to Covid-19 many Pharma companies have performed well.
Weak rupee can help the exporting Pharma companies.

Outperformers: Cipla, Sun Pharmaceutical, Aurobindo Pharma, Alkem Laboratories.
Underperformers: Biocon, Torrent Pharma, Dr. Reddy's Laboratories.

Metal Index Stocks at NSE

15 January 2021
Nifty Metal Sector Index is trading above 50-day and 200-day moving average.
Out of 15 Nifty Metal Index stocks 14 are trading above 200-dma.
That means 93% of Metal stocks are trading above 200-dma. 
There is improvement in price of commodities in the recent times.
Weakness in US dollar could be the reason.
The price of metals, minerals and crude oil have moved up steadily.

Outperformers: Jindal Steel & Power, APL Apollo Tubes, Tata Steel, JSW Steel, Hindustan Copper. 
Underperformers: Coal India, Welspun Corp, Mishra Dhatu Nigam, MOIL.

Media at NSE

29 December 2020
Nifty Media Sector Index is trading above 50-day and 200-day moving average.
All the 10 Nifty Media sector index stocks are trading above 200-dma.
That means 100% of Media sector stocks are trading above 200-dma.
The theatre segment had been affected due to covid-19. 
The theatre space is giving way to logistic industry.

Outperformers: Sun TV Network, TV18 Broadcast, TV Today Network.
Underperformers: Jagran Prakashan, D B Corp.

Cement

18 December 2020
All the 32 leading Cement stocks are trading above 200 day moving average.
That means 100% of cement stocks are trading above 200-dma. 
With big incentive for the housing sector there is good demand for cement and steel.
Increase in the price of crude oil and GST could affected the cement sector.

Outperformers: UltraTech Cement, Gujarat Sidhee Cement, HIL, Shree Cement, Deccan Cements, Grasim Ind.
Underperformers: Century Textiles, Sanghi Industries, Mangalam Cement, Kakatiya Cement, Shri Keshav Cements.
Stocks with stable up move over longer period 
• Grasim Industries, HIL, Ramco Cements.

FMCG – NSE

27 November 2020
FMCG Sector Index is trading above 50-day and 200-day moving average.
Out of 15 Nifty FMCG Index stocks 13 are trading above 200 day moving average.
So, 87% of Nifty FMCG Index stocks are trading above 200-dma.
FMCG sector has managed to move up, thanks to better monsoon and GST. 
FIIs have shown keen interest in FMCG sector.

Outperformers: Nestle India, Varun Beverages, Emami, Tata Consumer, Jubilant Foodworks, Marico. 
Underperformers: United Spirits, ITC, United Breweries.

Finance – NSE

20 November 2020
Nifty Financial Services Sector Index is trading above 50-day and 200-day moving average.
Out of 19 Nifty Financial Services Sector Index stocks 18 are trading above 200-dma.
That means 95% of Financial Services Sector Index stocks are trading above 200-dma.
The Indian economy is expected to perform well. 
Hence it is expected that banks, finance, NBFC and insurance will perform well.
Outperformers: Kotak Mahindra Bank, HDFC Bank, HDFC Life, Cholamandalam Investment, Bajaj Finance, ICICI Lombard, HDFC. 
Underperformers: M & M Financial, RECL, SBI, PFC, Shriram Transport.

Information Technology - NSE

14 August 2020
Nifty Information Technology Sector Index is trading above 200 day moving average.
All the 10 Nifty IT Index stocks are trading above 200-dma. 
That means 100% of IT Sectors stocks are trading above 200-dma.
Nifty Information Technology is one of the best performing Sectors at present.
The index is trading above 50-dma with bullish crossover.
Information Technology is a defensive sector supported by weakening of rupee.
Outperformers: Mphasis, MindTree, NIIT Technologies, Infosys. 
Underperformer: Tech Mahindra.

Energy

7 August 2020
Out of 23 S&P BSE Energy sector index stocks, 6 are trading above 200 day moving average.
That means 26% of Energy sector stocks are trading above 200-dma.
Nifty Energy index is trading above 200-dma, thanks to RIL sharp up move.
Crude oil price increase will help the producers but will affect the users.
Outperformers: Reliance Industries, Gujarat Gas, Adani Gas, Aegis Logistics.
Underperformers: Coal India, Alphageo (India), Panama Petrochem, IOC.

Telecom

17 July 2020
Out of 14 S&P BSE Telecom sector index stocks 8 are trading above 200 day moving average.
That means 57% of Telecom sector stocks are trading above 200-dma.
There is disruption and consolidation in the Telecom sector.
Outperformers: Tata Communications, ITI, Bharti Airtel, Mahanagar Telephone Nigam.
Underperformers: Optiemus Infracom, Tejas Networks, Reliance Communications.

TECk – Telecom

3 July 2020
Out of 7 BSE TECk – Telecom Index stocks all 7 are trading above 200 day moving average. 
That means 100% of Telecom Sector stocks are trading above 200-dma.
After a long-time strength is seen in the leading telecom shares.
Work from home and demand for Jio have given boost to this sector.
Outperformers: Tata Communications, ITI, Bharti Airtel, Bharti Infratel.
Underperformers: Sterlite Technologies, Vodafone Idea.

Oil & Gas

26 June 2020
BSE S&P Oil & Gas Sector Index is trading below 200 day moving average.
Out of 10 Oil & Gas stocks 4 are trading above 200-dma. 
So, 40% of Oil & Gas Index stocks are trading above 200-dma.
Deregulation in the oil sector has improved the fortunes of oil marketing companies (OMC).
Drop in oil price has affected the oil producing companies.
Covid-19 has affected all transport industries and hence the oil industry also.
Outperformers: Reliance Industries, Petronet LNG, Indraprastha Gas, Gujarat State Petronet.
Underperformers: Indian Oil Corporation, Oil & Natural Gas Corporation, GAIL India.

Fast Moving Consumer Goods

19 June 2020
S&P Fast Moving Consumer Goods Sector Index is trading below 200 day moving average. 
Out of 15 leading BSE FMCG Index stocks 7 are trading above 200-dma.
So 47% of the leading BSE FMCG Index stocks are trading above 200-dma.
MNCs interest in FMCG sector keeps the stock price up despite higher price to earnings.
FMCG is a defensive sector and has advantage of good monsoon and low GST.
Outperformers: E.I.D. Parry, LT Foods, Britannia Industries, Tata Consumer, Nestle India, Godrej Consumer.
Underperformer: Bajaj Consumer, Future Consumer, ITC, Godfrey Phillips, United Breweries.

Information Technology

22 May 2020
S&P BSE IT Index is trading below 200 day moving average.
S&P BSE Information Technology Sector top volume and index contributors are analysed.
Out of 19 IT stocks 6 are trading above 200 day moving average. 
That means 32% of IT Sectors stocks are trading above 200-dma. 
Rupee is trading close to all time low of around 77 against US dollar.
Being an exporter weak rupee is positive for this Sector.
Outperformers: Subex, Larsen & Toubro Infotech, TCS, Mindtree, HCL Tech, NIIT Techs, Infosys.
Underperformers: eClerx Services, Tech Mahindra, Hexaware Technologies, L&T Technology.

Leading sectors 

8 May 2020
Top outperforming sectors are Pharma, Healthcare, IT, FMCG, Energy and Oil & Gas.
Top underperforming sectors are PSU Bank, Realty, Media, Bank and Financial Services.

BSE Healthcare or Pharmaceutical

30 April 2020
Out of 21 Pharmaceutical stocks 17 are trading above 200 day moving average. 
That means 81% of Pharmaceutical stocks are trading above 200-dma. 
Pharma like FMCG being a defensive sector outperforms other sectors in a falling market also.
Like IT companies Indian Pharma companies are also cashing on exports.

Outperformers: Abbott India, Ipca Laboratories, Biocon, Dr. Reddy's Lab, Cipla, Divi's Lab, Alkem Lab. 
Underperformers: Piramal Enterprises, Fortis Healthcare, Hester Biosciences, Apollo Hospitals.

Multinational Company – NSE

3 April 2020
Nifty MNC index is trading below 200 day moving average.
Out of 30 Nifty MNC index stocks 5 are trading above 200-dma.
That means 17% of MNC stocks are trading above 200-dma. 
High royalty payment to the parent companies had hurt the MNCs. 
However, increase in stake by parent companies in Glaxo Consumer, HUL and Glaxo Pharma has resulted in positive signals.
Brand image of Nestle took a knock after the Maggi issue and local Patanjali jumps up.
FII outflows can affected this sector and inflows can improve the fortunes of this sector.

Outperformers: Abbott India, Hindustan Unilever, Nestle India, Pfizer, Sanofi India.
Underperformers: Cummins India, Sterlite Technologies, Maruti Suzuk, Vodafone Idea, Vedanta. 
• Bullish Sectors: MNC Pharma, FMCG.

PSU - Oil & Gas

27 March 2020
Out of 9 BSE PSU Oil & Gas Index stocks 1 is trading above 200 day moving average. 
That means 13% of stocks are trading above 200-dma. 
Decontrol of petrol and diesel price has given boost to oil marketing companies.
Volatile movement of crude oil price has put pressure on this sector.
Covid-19 has changed the fortunes of the markets for now.
Outperformers: Gujarat Gas, BPCL, ONGC. 
Underperformers: Chennai Petroleum, Mangalore Refinery.

Pharmaceutical – MNC

20 March 2020
Out of the 7 MNC Pharma stocks 3 are trading above 200 day moving average.
That means 43% of MNC Pharmaceutical stocks are trading above 200-dma. 
Pfizer, Roche and Novartis lost their patent cases in India.
MNC Pharma shares outperform the market most of the time. 
Outperformers: Abbott India, Pfizer, AstraZeneca Pharma. 
Underperformers: Novartis India, GlaxoSmithKline Pharma.

Quality 30 Index stocks at NSE

13 March 2020
Out of Nifty Quality 30 index stocks 7 are trading above 200 day moving average.
That means 23% of Nifty Quality 30 stocks are trading above 200-dma.
Nifty Quality 30 index is trading below 200-dma.
However this index is performing much better than Nifty 50.
Outperformers: Asian Paints, Nestle India, Pidilite Industries, Bajaj Finance, Hindustan Unilever, Berger Paints, Dabur India.
Underperformers: Indiabulls Housing, Coal India, Hero MotoCorp, Godrej Consumer, HCL Technologies.

Infrastructure – NSE

20 February 2020
Out of 30 Nifty Infrastructure Sector Index stocks 14 are trading above 200-dma. 
That means 47% of Infrastructure stocks are trading above 200 day moving average. 
Infrastructure sector stocks can do better with improvement in the economy.

Outperformers: Apollo Hospitals, Bharti Airtel, Shree Cement, MRF, IGL, Ramco Cements, Reliance Industries.
Underperformers: Hindustan Petro, Tata Power, ONGC, Larsen & Toubro, NTPC, GAIL, IOC.

Services Nifty NSE

10 January 2020
Out of 30 Nifty Services Sector Index stocks 19 are trading above 200 day moving average.
That means 63% of Services Sector stocks are trading above 200-dma.
Services Sector Index is trading above 50 and 200-dma.
Services Sector stocks are from bank, energy, finance, IT, media, power, telecom and transport.

Outperformers: HDFC, Bharti Airtel, ICICI Bank, HDFC Life, Bajaj Finserv, Bajaj Finance, SBI Life. 
Underperformers: Yes Bank, Zee Entertainment, Indiabulls Housing, GAIL India, RBL Bank.

Realty

30 December 2019
S&P BSE Realty Sector Index is trading above 200 day moving average.
Out of 10 Realty stocks 5 are trading above 200-dma.
So, 50% of Realty stocks are trading above 200-dma.
NSE Nifty Realty is also trading above 200-dma..
Realty sector has steadily started moving up.
This sector is sensitive to interest rate.

Outperformers: DLF, Phoenix Mills. Prestige Estates, Godrej Properties.
Underperformers: Peninsula Land, HDIL, Puravankara, Sobha.

Consumer Durables

25 October 2019
Out of 10 S&P BSE Consumer Durables Sector Index stocks 7 are trading above 200 day moving average. 
That means 70% of Consumer Durables stocks are trading above 200-dma. 
There is always good demand for gold in India and price is close to all time high levels. 
However price of gold is still below the peak value in the world markets.

Outperformers: Hawkins Cooker, Voltas, Whirlpool of India, Blue Star, Titan Company. 
Underperformers: PC Jeweller, Sharp India, BPL, Bajaj Electricals, IFB Industries.

Finance at BSE

18 October 2019
S&P BSE Finance Index is trading above 200 day moving average.
Out of leading 42 S&P BSE Finance Index stocks 17 are trading above 200-dma.
That means 40% of Finance Sector Index stocks are trading above 200-dma.
The Indian economy is expected to perform well with good monsoon. 
Hence it is expected that banks, NBFC, housing finance, micro finance and insurance to perform well.

Outperformers: MCX, Manappuram Finance, Bajaj Finance, GRUH Finance, SBI Life, Reliance Nippon, Bajaj Holding.
Underperformers: Karnataka Bank, Indiabulls Ventures, Weizmann Forex, Indostar Capital, BOB, Ibulls Housing.

Bank – NSE

1 October 2019
Nifty Bank Sector Index is trading below 200 day moving average.
Out of 12 Bank stocks 3 are trading above 200-dma. 
That means 25% of Bank Sector stocks are trading above 200-dma.
Private Banks are performing better than PSU Banks.
Non-Performing Assets (NPA) in PSU Banks are well known.

Outperformers: Kotak Mahindra Bank, HDFC Bank, ICICI Bank.
Underperformers: Punjab National Bank, Bank of Baroda, IndusInd Bank.

Paint  

6 September 2019
Out of 7 Paint industry stocks 5 are trading above 200 day moving average. 
That means 71% of the Paint stocks are trading above 200-dma. 
The drop in the price of commodities has benefited the paint industry.
Stable and low price of crude oil is positive but downturn in auto sector is negative.

Outperformers: Mitshi India, Berger Paints India, Asian Paints, Kansai Nerolac Paints. 
Underperformers: Shalimar Paints, Hardcastle and Waud Manufacturing Company.

TECk – Technology

17 May 2019
Out of 11 S&P BSE TECk IT sector stocks 8 are trading above 200 day moving average.
That means 73% of these stocks are trading above 200-dma.
The 50/200-dma bullish crossover is in progress for BSE IT and NSE IT sector indices.
Outperformers: Wipro, Infosys, Tech Mahindra, Just Dial, Infosys, Tata Consultancy Services.
Underperformers: Cyient, OFSS, Mphasis.

Information Technology – Others (USA)

29 April 2019
Tech heavy NASDAQ is trading above 200 day moving average.
Most of the leading world markets are also trading above 200-dma.
Out of 20 US Information Technology stocks 19 are trading above 200-dma.
That means 95% of the US Information Technology stocks are trading above 200-dma.
NASDAQ has hit all time high and 50/200-dma golden crossover is in progress.

Outperformers: Microsoft Corporation, Alphabet, Adobe, Workday, Facebook, VMware. 
Underperformers: Intel Corporation, Verizon Communications, Cognizant Technology, IBM.

TECk

19 February 2019
S&P BSE TECk sector index is trading above 200 day moving average.
Out of 29 S&P BSE TECk index stocks 8 are trading above 200-dma.
That means 28% of TECk stocks are trading above 200-dma.
The 50/200-dma golden crossover is in progress.
TECk is a combination of Technology and Knowledge based industries.

Outperformers: Tech Mahindra, Wipro, Infosys, INOX Leisure, HCL Technologies, Tata Consultancy Services. 
Underperformers: Vodafone Idea, Jagran Prakashan, TV18 Broadcast, Navneet Education, Reliance Com.

Energy – NSE

8 February 2019
Nifty Energy Index is trading above 50 and 200 day moving average. 
The 50/200-dma golden crossover could be due to the huge weightage of RIL.
Out of 10 Nifty Energy Sector stocks only 1 is trading above 200-dma. 
That means 10% of Energy Index stocks are trading above 200-dma.

Outperformers: Reliance Industries, Bharat Petroleum Corporation.
Underperformers: NTPC, Reliance Infrastructure.

PSU – Banks & Finance

31 December 2018
Out of 23 S&P BSE PSU Bank Index stocks 10 are trading above 200 day moving average. 
That means 43% of PSU Bank & Finance stocks are trading above 200-dma.
Banking Sector is sensitive to inflation and interest rate.
PSU Banks NPAs run close to 15 lakh crores.

Outperformers: State Bank of India, Oriental Bank of Commerce, Canara Bank.
Underperformers: General Insurance Corporation of India, New India Assurance Co, Jammu & Kashmir Bank.

Paper at BSE NSE

22 November 2018
Out of 16 Paper Sector stocks 7 are trading above 200 day moving average.
That means 44% of the Paper stocks are trading above 200-dma.

Outperformers: Nath Pulp and Paper Mills, Satia Industries, West Coast Paper Mills, JK Paper and Shree Ajit Pulp.
Underperformers: Tamil Nadu Newsprint & Papers, Star Paper Mills, South India Paper Mills.

Sugar Sugar at BSE NSE

19 September 2018
Out of 24 Sugar stocks from BSE and NSE 12 are trading above 200 day moving average. 
That means 50% of Sugar stocks are trading above 200-dma. 
Sugar being an essential commodity is sweet for the voting public. 
Sugar could be bitter at times for the farmers or industry.
Rise in crude oil price and strengthening of US dollar encourages blending of ethanol with petrol.
Though liberalization has taken place still there are many restrictions for the industry.

Outperformers: Ravalgaon Sugar Farm, Shree Renuka Sugars, DCM Shriram Industries, Ponni Sugar (Erode), Bajaj Hindusthan Sugar, Uttam Sugar Mills.
Underperformers: Riga Sugar, Kakatiya Cement Sugar & Industries, E.I.D.- Parry (India), Dwarikesh Sugar Industries.

Automobile Sector Index stocks at NSE

27 July 2018
Nifty Automobile Sector Index is trading below 200 day moving average.
Out of 15 Nifty Auto Index stocks 5 are trading above 200-dma.
That means 33% of Automobile stocks are trading above 200-dma. 
Increase in the price of metal and crude oil has affected the performance of this sector.
Increase in the interest rates can further give trouble to this sector.

Outperformers: MRF, Exide Industries, Mahindra & Mahindra, Apollo Tyres, Maruti Suzuki India. 
Underperformers: Tata Motors, Bajaj Auto, Hero MotoCorp.

Bank

13 July 2018
S&P BSE Bankex Sector Index is trading above 200 day moving average.
Out of 10 BSE Bank Sector Index stocks 4 are trading above 200-dma.
That shows 40% of BSE Bank Sector Index stocks are trading above 200-dma.
Bank Sector is sensitive to inflation and interest rate.
Banking and finance services sectors are outperforming in recent times.

Outperformers: HDFC Bank, Kotak Mahindra Bank, Yes Bank, City Union Bank, RBL Bank, IndusInd Bank.
Underperformers: Union Bank of India, Dhanlaxmi Bank, Indian Overseas Bank, Bank of India.

Consumption – NSE

1 June 2018
Out of 30 Nifty India Consumption index stocks 18 are trading above 200 day moving average. 
That means 60% of India Consumption stocks are trading above 200-dma.
Outperformers: Godrej Consumer Products, Dabur India, Hindustan Unilever, Colgate-Palmolive (India), Britannia Industries, Mahindra & Mahindra, Page Industries.
Underperformers: Apollo Hospitals Enterprise, Emami, Tata Power Company, Idea Cellular.

Commodities – NSE

2 January 2018
Out of 30 Nifty India Commodities index stocks 27 are trading above 200 day moving average. 
That means 90% of commodities stocks are trading above 200-dma.
The fall in the price of commodities has improved the fortunes of some sectors like auto, aviation, cement, metals, petrochemicals etc.

Outperformers: Steel Authority of India, Tata Power Company, Oil India, Tata Steel, Hindalco Industries, Century Textiles & Industries and JSW Steel.
Underperformers: Coal India, UPL, Indian Oil Corporation.

Tea Coffee at BSE NSE

29 November 2017
All the 14 Tea Coffee stocks from BSE and NSE are trading above 200 day moving average. 
That means 100% of Tea Coffee stocks are trading above 200-dma. 
Production of less tea in some part of the world has pushed the price up.
Besides tea has been extensively used in politics also!

Outperformers: Goodricke Group, Tata Global Beverages, Tata Coffee, McLeod Russel India, Jay Shree Tea & Industries, KanCo Tea & Industries, Harrisons Malayalam.
Underperformers: CCL Products (India), United Nilgiri Tea Estates Company, Bombay Burmah Trading Corporation.

Fertilizer at BSE NSE

28 November 2017
Out of 15 Fertilizer stocks from BSE and NSE 14 are trading above 200 day moving average. 
That means 93% of Fertilizer stocks are trading above 200-dma. 
Fertilizer is subsidies still the plight of small farmers has not improved.

Outperformers: Zuari Global, SPIC, Coromandel International, Madras Fertilizers, Mangalore Chemicals & Fertilizers, Chambal Fertilisers & Chemicals, RCF.
Underperformers: National Fertilizers, FACT, Dharamsi Morarji Chemical Co.

Logistics at BSE NSE

24 November 2017
Out of 12 Logistics stocks from BSE and NSE 8 are trading above 200 day moving average. 
That means 67% of Logistics stocks are trading above 200-dma. 
Logistics sector involved in storing and warehousing has been given the infrastructure status.

Outperformers: VRL Logistics, Arshiya, Aegis Logistics, Balmer Lawrie & Company, Mahindra Logistics.
Underperformers: Asis Logistics, Chartered Logistics, Allcargo Logistics.

PSU - Metal & Mining

6 October 2017
Out of 9 BSE PSU Metal & Mining Index stocks 3 are trading above 200 day moving average. 
That means, 33% of PSU Metal stocks are trading above 200-dma.

Outperformers: National Aluminium Company, Gujarat Mineral Development Corporation, MOIL. 
Underperformers: NMDC, Steel Authority of India, Coal India.

Automobile

22 September 2017
BSE Automobile Sector Index is trading above 200 day moving average.
Out of 14 Auto stocks 9 are trading above 200-dma.
That means 64% of Automobile stocks are trading above 200-dma. 
Metal and crude oil price coming lower is good for the auto sector.
Drop in the interest rates can further boost this sector.

Outperformers: Maruti Suzuki India, Grauer & Weil (India), Sundaram Clayton, Bharat Forge, JBM Auto.
Underperformers: SML Isuzu, Omax Autos, Amtek Auto, Amara Raja Batteries, Tata Motors.

Power

7 Aug 2017
BSE Power Sector Index is trading above 20, 50, 100 and 200 day moving average.
Out of 18 Power Index stocks 14 are trading above 200-dma. 
So, 78% of Power Index stocks are trading above 200-dma.

Outperformers: PTC India, Lakshmi Electrical Control, GVK Power & Infrastructure, NTPC, Power Grid Corporation.
Underperformers: Lanco Infratech, Reliance Power, BHEL.

Metal

9 June 2017
BSE S&P Metal Sector Index is trading above 200 day moving average.
Out of 10 Metal Index stocks 7 are trading above 200-dma.
So, 70% of Metal stocks are trading above 200-dma.
BSE Metal Sector Index is trading above 20 and 50-dma but below 100-dma.
There is improvement in the price of commodities in recent times.
The price of metals, minerals and crude oil have moved up steadily.

Outperformers: APL Apollo Tubes, Gujarat Mineral Development Corporation, Hindalco Industries, Tata Steel.
Underperformers: Gujarat NRE Coke, Coal India, Orissa Min Dev Co.

Public Sector Undertakings

6 March 2017
BSE PSU Index is trading above 200 day moving average.
Out of 56 PSU Index stocks 50 are trading above 200-dma.
That means 89% of PSU stocks are trading above 200-dma.
Outperformers: IOC, Chennai Petroleum, National Aluminium, Vijaya Bank, NLC India.
Underperformers: Indian Overseas Bank, Container Corporation, UCO Bank.

PSU - Power & Other Sectors

19 January 2017
Out of 17 PSU Power & Other Sector Index stocks 15 are trading above 200 day moving average.
That is 88% of these stocks are trading above 200-dma.

Outperformers: Power Grid, Engineers India, Balmer Lawrie, Bharat Electronics, NTPC.
Underperformers: BHEL, Shipping Corporation of India, Container Corporation.

Public Sector Enterprises – NSE

21 December 2016
Out of 20 Nifty PSE index stocks 16 are trading above 200 day moving average.
That means 80% of Public Sector Enterprises stocks are trading above 200-dma.
Most of the time Private sector stocks outperform Public sector stocks.
But recently Public sector is in the upswing dominated by Oil & Gas stocks.

Outperformers: Engineers India, BPCL, Petronet LNG, HPCL, IOC.
Underperformers: CONCOR, Coal India, Rural Electrification Corporation.

Pharmaceutical – Others
(Other than BSE Health Care, NSE Pharma and MNC Pharma stocks)

4 September 2015
Out of 15 shares 11 are trading above 200 day moving average.
That means 73% shares are trading above 200-dma.
Outperformers: Jubilant Life Sciences, Dishman Pharmaceuticals, FDC.
Underperformers: Elder Pharmaceuticals, Sterling Biotech.

TECk – Media

16 June 2015
Out of 10 BSE TECk – Media Index stocks 2 are trading above 200 day moving average.
That means 20% of Media Sector stocks are trading above 200-dma.
Outperformers: Dish TV India, TV18 Broadcast.
Underperformer: Sun TV Network

Capital Goods

26 February 2014
Out of 20 BSE Capital Goods Index stocks 14 are trading above 200 day moving average.
So, 70% of Capital Goods stocks are trading above 200-dma.
Outperformers: AIA Engineering, VA Tech Wabag, SKF India, Larsen & Toubro.
Underperformers: Bharat Electronic, Pipavav Defence and Offshore Engineering Company.

Details

Written by Market Analyst

Category: Stock Market

Published: 12 October 2006

Last Updated: 06 December 2020

Quality Rather Than Quantity 

Bulls and Bears Past movement In the recent past, Indian stock markets were moving only in one direction and that was up, up and up. The Bombay Stock Exchange Sensitive Index (Sensex) from the levels of below 3000 in 2001, moved to eye popping levels of above 21000 in Jan 2008. Big bulls of the stock markets were projecting the Sensex to climb to 40000 and even 45000. The markets moving in top gear put the brakes. Sensex from the peak of 21216 in January 2008 moved to levels below the psychological level of 10000 in October 2008 to hit a low of 7697. Is the party over? Yes, certainly for the near term. The big bears were projecting the Sensex to drop to 6000. Can the Sensex drop so sharply? Or have the markets already bottomed out? Yes, the markets had bottomed out. Present movement Sensex from a low of 7697 in 2008 bounce back above 10000 to touch a high of 21108 in Nov 2010. From there Sensex corrected to a low of 15135 in Dec 2011. After consolidating for four years there was fresh breakout to take the markets to a higher orbit. Sensex has made an all-time high of 28822 in November 2014 and further moved up to 30024 in January 2015. The trend has turned bullish and the market up move continued to make another new high of 42273 in Jan 2020. How long can this uptrend continue? The leading world stock markets after trading around all-time high levels had the problem of trade war and volatile crude oil price. After outbreak of Covid-19 pandemic sharp fall was witnessed in the markets and Sensex corrected to a low of 25638. With huge liquidity in the system and hopes of early vaccine for Covid-19 markets are moving north. Sensex has made a new high of 45079 in December 2020. FII inflow It would be good to analyse what lifted the stock markets to such high levels and the subsequent reversal of the trend. The economic reform process initiated in the early 1990s resulted in all round economic growth in India.  Earlier from being an importer, India could turn into an exporter of agriculture products and industrial goods. The growth in the service sector was even more impressive with huge success in the Information Technology industry.  This liberalised economic environment was conducive for the upswing of the stock markets. With huge inflow of funds from Foreign Institutional Investors (FII) the markets made impressive gains. It is observed that the stock market tanks when FIIs pullout money from India. FII inflow is in the region of $20 billion per annum. Another player has emerged strong since 2016 is the Domestic Institutional Investors (DII).  More investors have started participation in the stock market is a big way through DIIs. Nowadays whenever FIIs are selling, the pressure is absorbed by the DIIs. Crude oil shock The subprime problem was putting pressure on US and European banks and the stock markets.  Crude oil price from the levels of $40 per barrel in 2004, moved to levels of more than $100 per barrel in Jan 2008 and to the peak of $147 in July 2008. These factors were hurting the world economy and the stock markets. FII inflows dried up and later turned net sellers and the Indian markets tanked. The price of crude oil cooled to $70 per barrel in October and below $40 in December 2008 but that did not help the world markets. The global financial crisis was putting huge pressure on the world markets. During the up move of oil price the pain was for the oil consumers and with the oil price hitting low the pain had shifted on the oil producers. The global economic downturn had put pressure on the crude oil price. Stimulus package by many nations improved the world economy the oil price moved up to $100 per barrel in 2011. Oil producers increased the output and shale gas from USA also increase the supply and the price dropped close to $35 in 2016. The OPEC and Russia cut the oil production and pushed up the oil price to $76 in 2018. Now the price of oil is volatile and after moving back to $42 has moved up to $60. Long-term investment Markets move in both the directions and what should be the investment strategy?  Investment in stock market can be a great pleasure if one is not greedy and not in great hurry to make money. Longer the time frame it will be that much easier to make money and conversely, shorter the time frame it will be that much difficult to make money. Besides, tax on long-term capital gains is nil or less than tax on short-term capital gains. Fundamentals It is always good to invest in fundamentally sound stocks only. This can save from severe capital erosion even during the bear phase. Besides, during the bad times also these stocks will not pose any liquidity problem. How can one identify fundamentally strong stocks?  Stock Exchanges have strong parameters to identify and to select stocks that can fit into the elite club of market index like Sensex and Nifty. Stock Exchanges also identify and select strong stocks in different industrial sectors. It is always good to be with the market indices and the sector indices. The Stock Exchanges always keep watch on these indices and pull out the weak stock and replace with stronger ones. Technical Analysis Some people buy stocks based on fundamental factors and some people buy stocks based on technical factors. It will be prudent to take advantage of both fundamental and technical factors. Technical analysis of all the stocks in the Sensex, Nifty, Nifty Next (Nifty Junior) and Nifty Midcap and other broad index can be viewed in Market Index and stocks from different industries and other themes can be seen in Sector Index. Some index leaders and laggards can also be viewed. 200 day moving average Technical analysis using simple 200 day moving average (dma) gives the long-term trend of the market, sector or any scrip. Stock trading above 200 day moving average indicates strength and will be a buy candidate with long-term point of view. On the contrary, stock trading below 200 day moving average indicates weakness and will be a sell candidate with long-term point of view. The trend is up when trading is above 200-dma and the trend is down when trading is below 200-dma. The ascending 200-dma line is most desirable and descending 200-dma line indicates weakness. The stocks trading above 200-dma are shown in blue colour, stocks trading close to 200-dma are shown in orange colour and stocks trading below 200-dma are shown in red colour. When a stock starts trading close to 200-dma, the stock can further strengthen and move above 200-dma. Similarly, when a stock trading above 200-dma starts trading below 200-dma the stock can weaken further and go down. When a weak stock starts moving up, 200-dma acts a major resistance. In the same way, when a strong stock starts moving down, 200-dma acts a major support. A logged in account of Yahoo Finance allows to retain the required settings in the indicators. Simple moving average (SMA) with 200-dma added in the indicator can be displayed in red colour and will be the smoothest line compared to all other lines.  Next 100-dma added can be displayed in green. Next 50-dma added can be displayed in brown. Next 20-dma added can be displayed in black. This line will move very close to the share price which is displayed in blue. The setting duration for one year gives daily graph. Longer duration when viewed will give weekly or monthly chart. In the same way lower duration when viewed will give minute chart. 100 day moving average  Technical analysis using simple 100 day moving average gives the medium-term trend of the market, sector or any scrip. When 100-dma moves above 200-dma, bullish cross-over (golden cross) happens. In other words, when the magenta line moves above the blue line that is a positive sign. On the contrary, when 100-dma moves below 200-dma, bearish cross-over (death cross) happens. In other words, when the magenta line moves below the blue line that is a negative sign. 50 day moving average Technical analysis using simple 50 day moving average gives the short-term trend of the market, sector or any scrip. Golden cross happens when 50-dma moves above 100-dma or 200-dma. In other words, when the green line moves above magenta or blue line that is a positive sign. On the contrary, death cross happens when 50-dma moves below 100 or 200-dma. In other words, when the green line moves below magenta or blue line that is a negative sign. 20 day moving average There are short-term traders interested in using 20-dma or lower durations. It is observed that the share price does not move too much away from that the 20-dma for long time. Whenever the movement is too far, whether up or down the share price moves back close to 20-dma. Volume In the chart, below the stock price movement the trading volume are shown as vertical bars. Stock moving up with high volume is a good sign as it shows large participation. Stock moving up with low volume is not a good sign as it shows less participation. Similarly, stock moving down with high volume is not a good sign but stock moving down with low volume is not a bad sign.   Few points to remember   Buy cheap (sheep) Sell dear (deer) It is not easy to buy at the bottom It is difficult to sell at the top Invest with surplus funds Never play in the market with borrowed money Trend is your friend Follow the trend When market moves up, greed creeps in When market goes down, fear sets in Buy on rumour Sell on news. Do not try to catch a falling knife It is easy to buy shares (possessive human nature) but difficult to sell shares. Always chase quality stocks, not quantity.   Well folks, it’s time to invest with long-term point of view. Happy investing!

 

Technical trend of Broad & Sector Index of BSE and NSE India

BSE NSE Sector Index	8May20 Chart Strength	13Dec19 Chart Strength	18Apr19 Chart Strength	25Mar19 Chart Strength	22Feb19 Chart Strength	4Jan19 Chart Strength	21Dec18 Chart Strength	23Nov18 Chart Strength	22Oct18 Chart Strength	21Sep18 Chart Strength	24Aug18 Chart Strength	20Jul18 Chart Strength	22Jun18 Chart Strength	14May18 Chart Strength	9Mar18 Chart Strength	9Feb18 Chart Strength	12Jan18 Chart Strength	15Dec17 Chart Strength	10Nov17 Chart Strength	13Oct17 Chart Strength	15Sep17 Chart Strength	11Aug17 Chart Strength	7Jul17 Chart Strength	9Jun17 Chart Strength
BSE  SENSEX	17	9	9*	13*	10		3	3	2	2	2	2	1 strong	1 strong	11	11	12	14	16	11	20	14	6	6
S&P BSE 100	14	12	14*	15*	14		5	5	5	4	4	5	5	5	13	9	10	15	17	8	1 stro	9	2	2
S&P BSE 200	15	13	17*	16	16		6	6	6	5	5	6	6	6	16	3	7	10	18	10	3	10	3	1 stro
S&P BSE 500	18	14	19*	18	17		7	8	7	6	6	7	7	7	14	6	8	8	12	9	7	12	4	5
NIFTY 50	16	11	13*	12*	12		4	4	4	3	3	3	4	3	17	14	17	17	20	5	10	13	9	11
NIFTY NEXT 50	10	19	21	21	21	14									21	16	13	12	15	15	5	15	10	15
NIFTY MIDCAP 50	20	25	20	20	22		8	7	8	8	8	8	8	8	19	25	18	9	8	16	4	20	14	18
NIFTY MIDCAP100	22	24	25	26	25		9	9	9	9	9	9	9	9	24	23	6	7	11	21	6	25	18	19
INDIA VIX	38 hi83	13	23	17	15		16	19	21	15	12	14	12	14	15	19	14	15	13	11	11	15	10	10
S&P BSE AUTO	21	31	32	32	30										25	24	22	5	24	13	23	24	20	8
NIFTY AUTO	23	30	33	34	31	25
BSE BANKEX	32	5	5*	11*	12*	3									23	13	24	21	14	24	19	7	13	7
NIFTY BANK	31	6	4*	10*	11*	2	1 strong	2	3	7	7	4	3	2	20	12	20	19	7	18	15	8	15	9
BSE CAPITAL GOODS	26	28	22	22	23	11									18	15	19	23	5	28	13	18	23	16
BSE CONS. DURABLES	28	2	17	14*	15*	13									4	18	4	1 strong	4	4	2	1 strong	16	13
NIFTY ENERGY	5	10	7*	3*	8*	18									9	19	25	22	27	3	12	3	22	21
NIFTY FIN SERVICE	29	1 strong	6*	8*	5*	1 strong
S&P BSE FMCG	4	22	12	7*	7*	7
NIFTY FMCG	6	17	10	4*	4*	6									6	7	27	25	30	28	26	29	5	12
NIFTY INFRA	9	16	26	24	24	15									26	26	21	24	22	22	18	19	21	17
S&P BSE IT	12	20	2*	1* strong	2*	8
NIFTY IT	3	23	1* strong	2*	1*	9	2	1 strong	1 strong	1 strong	1 strong	1 strong	2	4	1 strong	4	3	4	1 strong	6	28	23	30	27
NIFTY MEDIA	33	35	35	35	33
S&P BSE METAL	27	34	34	33	34	26									3	2	11	29	23	7	14	11	17	25
NIFTY MNC	8	18	24	23	19	12									5	1 strong	1 strong	2	13	17	9	2	1 strong	4
S&P BSE OIL&GAS	7	15	23	19	20	17									22	22	28	20	26	2	21	5	24	20
BSE Healthcare	2
NIFTY PHARMA	1 strong	33	18	17	18	19									31	31	31	31	31	30	31	31	31	29
S&P BSE POWER	19	27	27	25	27	23									29	30	23	28	29	27	25	27	25	26
NIFTY PSE	13	29	29	28	28	24									27	27	26	26	28	23	24	26	28	22
S&P BSE PUBLIC SECTOR	25	26	28	29	29	22									30	28	29	27	25	29	27	28	26	23
NIFTY PSU BANK	36	32	15*	27	26*	15									28	29	30	30	10	31	30	30	27	24
NIFTY PVT BANK	30	7	3*	6*	9*	4									12	10	14	13	9	12	8	6	11	3
NIFTY QUALITY 30						-									15	23	2	3	2	1 stro	11	21	19	14
S&P BSE REALTY	34	4	30*	30	32	20									7	17	16	18	19	25	16	17	7
NIFTY REALTY	35	3	31*	31	35	21									8	20	15	16	21	20	17	16	8
NIFTY SERVICES	24	8	8*	9*	6*	5									10	8	9	11	6	14	22	4	12	10
S&P BSE TECK	11	21	11*	5*	3*	10									2	5	5	6	3	19	29	22	29	28

 

Many stock markets in the world have made all time highs and now undergoing correction

Stock Market Index	4Dec20 Chart Strength	5Jun20 Chart Strength	3Jan20 Chart Strength	22Nov19 Chart Strength	17May19 Chart Strength	18Apr19 Chart Strength	22Mar19 Chart Strength	22Feb19 Chart Strength	18Jan19 Chart Strength	21Dec18 Chart Strength	23Nov18 Chart Strength	22Oct18 Chart Strength	21Sep18 Chart Strength	24Aug18 Chart Strength	20Jul18 Chart Strength	22Jun18 Chart Strength	18May18 Chart Strength	16Feb18 Chart Strength	19Jan18 Chart Strength	29Dec17 Chart Strength	17Nov17 Chart Strength	20Oct17 Chart Strength	22Sep17 Chart Strength	18Aug17 Chart Strength	14Jul17 Chart Strength	14Jun17 Chart Strength
S&P BSE SENSEX	1 strong	11	5	5	5*	6*	2*	10	2	2	2	5	4	2	1 strong	2	5	6	4	2	5	7	7	8	3	2
NIFTY 50	2	10	4	8	4*	5*	3*	11	4	3	4	7	5	3	3	3	9	5	5	1 strong	7	6	6	6	4	5
HANG SENG	12	13	13	13	10*	7*	4*	3	7	5	7	9	10	10	11	8	8	3	2	4	2	9	4	2	2	6
KOSPI Composite	4	2	12	12	13	13*	11	7	12	6	8	10	12	12	12			7	12	9	4	3	9	9	6	3
Nikkei 225	5	3	9	7	11	11	10	12	9	13	5	4	3	7	6	5	7	9	9	8	8	2	2	7	8	7
SSE Composite	7	7	10	11	9*	1* strong	1 strong	8	13	8	9	8	13	13	13	12	11	10	6	12	6	10	5	1 strong	11	12
CAC 40	11	6	1 strong	3	2*	3*	8	5	10	12	12	11	7	8	7	7	1 strong	8	8	11	10	11	10	12	12	11
DAX Performance	8	4	7	4	7*	9	12	9	11	10	11	12	11	11	10	9	6	12	10	10	9	5	8	11	9	4
FTSE 100	13	9	8	9	8*	8*	9	6	8	9	10	7	9	6	4	4	2	13	11	6	11	8	12	10	10	9
Dow Jones Industrial Average	6	5	6	2	3*	4*	6*	2	3	7	3	2	1 strong	4	5	6	10	4	1 strong	3	3	1 strong	1 strong	3	1 strong	1 strong
NASDAQ Composite	3	1 strong	3	1 strong	1* strong	2*	5	4	5	11	6	3	2	1 strong	2	1 strong	3	2	3	5	1 strong	4	3	5	10	8
IPC MEXICO	10	12	11	10	12	12	13	13	6	4	13	6	6	5	9	11	12	11	13	13	12	12	11	4	5	10
IBOVESPA	9	8	2	6	6	10*	7*	1* strong	1* strong	1 strong	1 strong	1 strong	8	9	8	10	4	1 strong	7	7

Note: *The 50/200-dma golden cross is in progress

• Stocks trading above 200 day moving average  
      Shares are shown in blue colour
• Stocks trading below but close to 200 day moving average 
      Shares are shown in orange colour
• Stocks trading much below 200 day moving average 
      Shares are shown in red colour

Yahoo Finance one year linear charts have been used for technical analysis with 200, 100, 50 and 20 day simple moving average along with standard MACD and RSI.