From The Economic Times · Ravindra Sonavane · · 1m 20s
Largecaps Selloff Deepens as 84% Nifty50 Stocks Below 200-DMA
Nifty50 stocks fall below 200-DMA as large caps bear brunt of selloff.
In brief
Nifty50 stocks fall below 200-DMA as large caps bear brunt of selloff. 84% of Nifty50 stocks trade below their 200-day moving averages, with large caps showing the most weakness. Originally reported by The Economic Times.
Nifty50 Selloff Intensifies
84% of Nifty50 stocks now trade below their 200-day moving averages, while smaller stocks show greater resilience.
Nifty500 and BSE 1000 Show Divergence
65% of Nifty500 stocks trade below 200-DMA versus 45% in BSE 1000, highlighting market segment differences.
Blue-Chip Stocks Plunge
Tata Motors, Maruti Suzuki, Infosys, TCS, HUL, ITC, and Jio Financial trade nearly 17-19% below their 200-DMA levels.
Mid-Caps Show Relative Strength
Mid-cap stocks remain relatively stable, with 190-odd Nifty500 stocks trading above their 200-DMA levels.
Technical Analysts Note Market Dispersion
Analysts say large caps show greater weakness while mid- and small-cap stocks hold longer-term trends better.
Historical Oversold Signal
Srivastava notes Nifty's current drop resembles oversold conditions seen in March 2020 or March 2026, historically linked to market bottoms.
Market Cap Analysis
The Nifty 500 shows 52 stocks 1-5% above 200-DMA, 28 at 5-10%, 65 at 10-20%, 21 at 20-30%, and 15 above 30%.
Next Signal for Stabilization
Analysts suggest Nifty 500 must sustain long-term trend support and declining stocks below 200-DMA for potential stabilization.
The takeaway
84% of Nifty50 stocks trade below their 200-day moving averages, with large caps showing the most weakness.
