Market momentum wanes as number of stocks touching 52-week highs falls
Earlier, in October 2010, a similar divergence, once the Nifty touched an intermediate high of 5,788, resulted in a month-long consolidation after which the index lost close to 4%.
In recent times, the number of Nifty components quoting above their 200-day moving average fell to 33 stocks, its lowest since mid-December, as the blue chips pared the premiums with which they stood above this long-term directional indicator.
Indian equities have shown a subdued performance in the year so far, despite attracting foreign institutional flow of about $4.5 billion. Both benchmarks have rallied about 1.5% compared to strong gains reported by other emerging markets like China, Thailand, Indonesia and Thailand, which gained 3% to 18% year to date. While the interest of retail investors still remains muted, the domestic institutions have continued their selling, with the YTD sales standing at about $3.5 billion.
Be the first to comment.