Trending Up, One Step at a Time
Large caps drive the momentum as breadth stabilizes and key trends stay intact
Indian markets spent the week grinding higher but quietly. Large caps led while mid- and small-caps lagged. After a soft start to the week, the market reversed sharply higher around mid‑week, and then spent the final sessions largely consolidating those gains.
Key Indices Performance:
Nifty50: +0.52% (made All Time High / ATH this week)
Sensex: +0.56% (made ATH this week)
Nifty500: +0.60% (less than 3% away from ATH)
Nifty Midcap150: +1.10% (~3% away from ATH)
Nifty Smallcap250: +0.05% (~10% away to make 52WH)
Nifty Midsmallcap400: +0.74% (~4% away to make 52WH)
Gains in the last two months rally are still tilted toward the higher market‑cap end of the market, where large and many mid‑cap stocks are much closer to their previous highs. Mid and small‑cap segments are improving but are still in the process of catching up.
Key Drivers This Week
Stronger GDP numbers and expectations of a steady, supportive RBI policy to bolstered risk appetite in equities.
Large-cap stocks displayed stronger relative strength and outperformed mid- and small-cap stocks, this week as well.
Technical Perspective
Nifty 500 trend: The index continues to trade comfortably above all key moving averages (20/50/200day EMAs), confirming that the primary trend is still firmly up despite the pause. All major EMAs are also aligned in a bullish sequence (10 > 20 > 50 > 100 > 200EMA), reinforcing the strength of the underlying trend.
Nifty500 slipped below its rising 20EMA early in the week but quickly reclaimed it mid-week. It closed near the upper end of its weekly range, showing steady consolidation. The last trading day also formed an inside bar, highlighting very low volatility.
With the earnings season now behind us, focus will be on management commentary and anticipated growth in consumer demand driven by the implementation of GST 2.0.
The index continues to make higher highs on the weekly chart and is consolidating near the upper boundary of its previous range, a sign of resilience.
The reason we track Nifty500 is because it represents over 90% of the free float market capitalization, making it a comprehensive barometer of market health.
Nifty500’s 10EMA crossed above its 20EMA on 7th October triggering a ‘Stay’ signal that suggests holding onto existing long positions.
On our Market Breadth page, we use a simple trend filter: when Nifty500’s 10EMA is above the 20EMA, we treat the market as supportive for long trades. If 50EMA is also rising along with 10EMA>200EMA, we consider the broader trend bullish and stay positioned on the long side. On the other hand, when Nifty500’s 10EMA falls below 20EMA, we curtail our positions and if 50EMA also starts declining, we step aside. A defined rule like this ensures discipline. But then, it’s not a rule that can guarantee accuracy every time. During choppy markets, 10EMA and 20EMA may cross back and forth giving us whipsaws. We had our last crossover of 10EMA over 20EMA on 7th October. 50EMA turned green soon after, and we are in bullish sync since then. A recent test of Rising 50EMA (on 7th November) was also respected. The wild swings on Nifty500 (gap between its swing highs & lows) are getting reduced. Nifty500 also made a new Higher Low on daily timeframe chart. For momentum to continue further, the Nifty500 now needs to clear the previous swing high zone near 24,000 without any fall back.
Market Breadth: The percentage of stocks trading above key short-term moving averages improved this week. As of November 28, 2025, about 35%, 30% and 29% of stocks are above their 10EMA, 30EMA, and 50EMA respectively. While the index looks bullish, the market breadth readings remain below the midpoint (50% mark), signaling that the majority of stocks are trading below short-to-medium-term trend levels, which is typically a corrective sign for the broader market.
Market breadth remains weak, and we are not in the oversold zone. It’s important to note that overbought or oversold signals are most relevant for swing traders, as they reflect short-term momentum shifts.
Accessing Market Breadth on Pro-Setups Dashboard is available for all readers. Click on the link below.
Sectoral Performance
Our Sectoral Performance page is updated with a new layout. It now includes sectoral heatmaps for weekly, monthly, and three-month RS ratings, plus new charts for sectors based on moving averages for 10EMA>Rising 20EMA, stocks above 20EMA, rising 50EMA, and 50EMA>200EMA coverage. The RS Rating comparison chart is also updated to include more than one timeframe bars to make comparison easier.
Banks (both Pvt. and PSU) lead as strong sectors. Private Banks were stronger this week than their PSU peers.
Financial Services, Automobiles and Building Materials (specially Paints) are also the top performing sectors across all timeframes. Automobiles are gaining further momentum as the % of stocks above key moving averages increase.
Broking shows upward momentum on the weekly RS heatmap, where it ranks higher than on monthly and 3-month heatmaps, indicating short-term acceleration. Within Automobiles, this trend is seen with Tractors and Commercial Vehicles.
Summary
Indian markets inched higher this week, with the Nifty50 and Sensex hitting fresh all-time highs and the Nifty500 staying firmly above all major EMAs. Large caps again showed stronger momentum, while mid and small caps are improving but still catching up. The Nifty500 briefly dipped below its 20EMA early in the week but quickly reclaimed it, closing near the top of its weekly range with very low volatility - a sign of steady consolidation.
Our trend filters remain supportive, with the 10EMA > 20EMA signal still active since 7th October and the 50EMA continuing to rise. Market breadth improved slightly but stays below the 50% mark, showing that many stocks are still below short-term trend levels.
Sector-wise, Banks (both PSU and Private) continue to lead across all timeframes. Financial Services, Automobiles, and Building Materials remain strong, with Autos showing further strength as more stocks climb above key EMAs.
Very insightful, Thanks.