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.
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.