According to NSE data released Thursday, roughly 75% of Nifty 500 constituents were trading under their 100‑day moving averages, a level that traders see as a bearish signal.
The 100‑day moving average is a mid‑term trend line; when a large portion of the index crosses below it, momentum tends to shift toward the downside. Analysts note that such a spread often precedes a broader index pullback.
Foreign portfolio investors have stepped up net outflows, pouring capital into safer assets. Market watchers warn that continued pressure could force more stocks into the red zone, tightening the technical support around the 100‑day line.
Survivors of the dip are now in a holding pattern, awaiting a clear reversal signal. If a significant cluster of stocks rebounces above the 100‑day MA, it could signal a potential turnaround; otherwise, the bearish bias is likely to persist.
Looking ahead, traders will monitor the next trading session for any breakout or breakdown, while institutional investors gauge the impact of FPI flows on the broader equity landscape.