There is currently pressure in the stock market and amid this pressure, many companies have slipped below their important levels. If we look at the data, two-thirds of the companies included in Nifty 200 are currently trading below their 100 DMA. Out of these, there are 82 companies which have fallen below 200 DMA.

The current phase of decline in Indian markets started with the announcement of relief package in China. During this period, Nifty 50 has come down 7 percent from its upper levels. There is a possibility that Nifty may see further decline. CLSA chartist Lawrence Blanco believes that Nifty 50 may touch 200 DMA in the next 20 trading sessions. He said that Nifty has touched the 200 DMA level only twice in the last 18 months and now it is likely to happen for the third time. The number of stocks of government companies is very high in the list of stocks slipping below their important levels. Stocks of 26 companies have broken their 200 DMA level. With pressure on the stocks of government companies, the BSE PSU index has broken its 200 DMA level on 22 October itself. The companies which have seen their 200 DMA level in the recent decline include Cochin Shipyard, Container Corporation, IRFC, LIC, IRCTC, Bank of India, Punjab National Bank. However, Sunil Kaul, Executive Director (Asia Pacific Equity Strategist) of Goldman Sachs, believes that given the flow from domestic investors, there are no indications that the market will see any sharp decline. The 200 DMA for Nifty 50 is currently 23354. Earlier, Nifty had broken the 200 DMA level in the results of the 2024 general elections and in March 2023.