(Jan 21): India’s NSE Nifty 50 Index briefly slipped below its 200-day moving average Wednesday (Jan 21) for the first time since May, breaching a level that has often served as support.
The gauge rebounded and moved higher not long after falling below that level. Historically, such conditions have often preceded stabilisation rather than prolonged declines. Since the pandemic-induced lows of March 2020, the Nifty has often found support around the 200-day average. Meanwhile, the 14-day relative strength index sat near 30, a level that typically signals downside momentum has become stretched.
Recent pressure on Indian stocks has been compounded by currency moves, with the rupee hitting a record low level against the US dollar on Wednesday. Foreign investors have continued to pare equity exposure amid valuation concerns, a scarcity of artificial intelligence–linked stocks, and the absence of a trade deal with the US so far.
Uploaded by Arion Yeow
