Axis Securities noted that this level of market width has occurred 41 times over the past decade, defined by the majority of stocks trading above the 50-day moving average. In 75% of these instances, the NSE500 index recorded profits in the next 20 trading sessions. The average return for these win results was 2.8%, while the average loss for the remaining cases was 2.0%. Overall, the average return was 1.6%.
“This shift suggests that price action and investor sentiment are turning bullish not only into index heavyweights but also into a wide range of stocks,” Axis Securities said.
The broker added that this could be a good time for investors to reevaluate their strategies or add them to their existing winning positions.
The bullish technical signal comes even in the sustained profits of Indian stocks. On Wednesday, benchmark BSE Sensex closed at 80,116.49, rising 520.90 points (0.65%), recovering the 80,000 mark for the first time since the recent revision. The broader Nifty 50 index ended with 161.70 points (0.67%) at 24,328.95.
Sensex and Nifty have surged by more than 8% each in the past seven sessions, supported by updated foreign institutional investment and easing concerns about global trade. Market participants are also encouraged by the hope that US tariffs under the Trump administration will not have a negative impact on Indian exports.
Meanwhile, despite current bullishness, several technical indicators are beginning to release early warnings. “We are pleased to announce that we are committed to providing a range of technical analysts at LKP Securities,” said Rupak De, senior technical analyst at LKP Securities.
De pointed out that a hanging candle standing pattern was formed on daily charts. The relative strength index (RSI) is also approaching a potential negative divergence.
He said that if the nifty falls below the 24,300 mark, it can be revised towards the 24,000-23,900 zones. The advantage is that resistance is expected near the 24,450-24,500 range.
While the short-term trend remains positive, Axis Securities advised investors to monitor positions within a wide range of strength and look for breakout opportunities. Current setups supported by historical data suggest that momentum may continue, but caution is needed as an important resistance level approach.
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(Disclaimer: recommendations, suggestions, opinions and opinions given by experts are unique. These do not represent views of the economic era.)