Home / Markets / Stock Markets /  Bulls-bears in bitter duel as Nifty struggles to stay above 200-day moving average

MUMBAI: The market was off its morning low of 16,946, recouping 81 points to trade at 17,027 by 12 pm IST. The intraday recovery took the index above its 200-day simple moving average (SMA) of 16,980.

A conclusive break below the 200 SMA is considered bearish, which is leading to a tug-of-war between bulls and bears. The Nifty has lost more than 1,000 points from its mid-September high of 18,096, with FIIs turning net sellers of $0.9 billion of shares after purchasing $7 billion in the two preceding months.

Turmoil across global currency markets with the US Fed hiking rates by 75 bps for the third straight time since September 2021 has spooked equity markets with FIIs scurrying for the safety of US bonds in a risk-off sentiment.

“We see 16,980 and 17,100 as critical pivots for the day. Initial trades closer to 17,100 will improve confidence in a 17,170 breach today, setting off on a 17,350 run up," said Anand James, chief market strategist, Geojit Financial Services. 

“Alternatively, inability to float above 16,980 would raise the possibilities towards a 163,00 plunge. This outcome is less favoured, despite the sharp pull back on Friday, in the closing hour," he added.

The top 5 gainers included ONGC, up 4% at 132, Cipla and Divi's Lab, up over 2% each as of writing. Eicher Motors, Maruti and Kotak Bank featured among the top 5 index losers, down between 1.8% and 2.6%.

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