Nifty % of stocks above 200 Day MA at a High

A rally which is broad based is a healthier one and is more sustainable. One way of measuring the breadth is to check the % of stocks trading above the 200 day moving average (MA).

See the chart below:

The chart shows the % of Nifty 500 stocks trading above the 200 day MA . The number is 95%. This means 95% of stocks are bullish. While this may be a bit overheated, it shows the rally is broad based.

The rally can continue. There may be pullbacks. But there is a high probability that this trend is here to stay and can continue for few years more.

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