The ongoing rally has not just benefited a few, but almost all companies — at least in the Nifty50 universe.
According to Bloomberg data, about 86 per cent of the Nifty components are currently trading above their 200-day moving average (DMA) — a key technical indicator to study long-term trend of a stock.
The last time a higher percentage of Nifty stocks traded above the 200-DMA was in 2016. The 200-DMA is the average closing price for the past 200 trading sessions. A stock trading above 200-DMA is considered to be in bullish territory.
However, some believe a high reading is a warning sign, as it indicates that the market is over-bullish. The benchmark Nifty is currently hovering around its lifetime high.
The index of 50 blue-chip companies has rallied 10.5 per cent this month, and is up nearly 70 per cent from its Covid-19 low of 7,610 on March 23.