Ahmedabad: The Nifty-50 index crossed its long-term 200-day moving average (200-DMA) in Intrade Trading for the first time in the National Stock Exchange (NSE) on Monday (April 21). This level of the Nifty-50 index was last broken on 6 January 2025. Today, Nifty touched a high level of 24,188 in the day. It recorded an increase of 1.4% or 332 points.
The Nifty has registered a huge increase of 11% or about 2,400 points in the last eight trading sessions. With this speed, the Nifty not only crossed its short-term and medium-term moving averages (20-DMA and 100-DMA which is at 23,170 and 23,400 respectively), but also crossed its long-term 200-DMA on 21 April, which was at 24,051.
200-DMA is usually considered an important indicator for determining a positive or negative trend of a stock or index. When a stock or index trades above this level, it is seen as a positive sign.
Analysts believe that the recent bounce between India and the US may also be caused by the benefits of India due to changes in the potential trade agreement and supply chain. Nomura analysts believe that the worst phase of tariffs and trade war is now over. However, it is possible to declare area-specific tariffs in some areas such as pharma.
If the tariff risk environment remains stable, foreign investment may be strong again. Of the 50 shares included in the Nifty-50, 21 shares are now trading above their 200-DMA. These include HDFC Bank, ICICI Bank, Bharti Airtel, Bajaj Finance, Bajaj Finserv, SBI, Eicher Motors, Nestle India and Power Grid.
The current market situation is rapid. From the perspective of trend, 23,500 (Nifty) and 77,400 (Sensex) are considered an important support area. While the resistance area is between 24,000/79,000 and 24,200/79,600. However, if the market goes below 23,500/77,400, the perception may be negative and the index may slip to 23,350/76,900 or 23,200/76,500, where the first rapid difference was made.
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