Nifty50 has now completed 100 trading sessions under its 200 day moving average, making this the second longest phase in ten years. The index has stayed below this key level since February 27 and crossed the 100 day mark on July 28. The longest such period was in 2015 and 2016 when Nifty remained under the average for 159 sessions.
The 200 day moving average is currently at 24,790. Nifty had touched a peak of 26,373 on January 5 but later dropped to 22,183 on April 2 due to geopolitical tensions in West Asia. At present the index is near 24,000 which is still about 3% lower than the 200 day average. The gap has narrowed from 5% in April to 3% now, showing some recovery.
Technical experts see immediate support between 23,700 and 23,600 and stronger support between 23,500 and 23,300. On the upside, resistance is expected near 24,500. A breakout above this level could open the path towards 24,750 and 25,450. The near term view remains cautious unless Nifty sustains above 24,000.
Nearly 50% of Nifty stocks are trading below their 200 day average. Major companies include Reliance, HDFC Bank, Infosys, TCS, SBI, ITC, L&T and Maruti Suzuki. Analysts advise reducing weak positions near 24,100 to 24,200 and fresh buying only near strong support zones.