Nifty's 200-DEMA breach gave positive returns 10 of 11 past times: Report
Nifty 50 index recently breached a significant technical milestone, its 200-day Exponential Moving Average (EMA), on November 13 and is now trading below it. Domestic brokerage firm Bajaj Broking believes that it is a signal, promising potential returns for investors in the coming months.
A report by Bajaj Broking suggests that historically, out of 11 instances analyzed (excluding the COVID-19 market crash), the Nifty showed positive returns in 10 cases over a one-year period. This track record further emphasizes the potential significance of the recent EMA touchpoint.
According to the research, this technical event has historically been a harbinger of positive market performance. An analysis of NSE data spanning seven years reveals a compelling pattern of returns following EMA touchpoints.
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The data shows remarkable consistency in market performance after the Nifty touches its 200-day EMA. In the past, the index demonstrated impressive return potential:
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