Nifty50 touches key 200 DEMA levels: Will this level fuel upside similar to past trend?

Amid the relentless sell-off, with 1 oregon the different origin coming to interaction the D-Street negatively, the cardinal bluechip Nifty50 scale has touched the 200-day Exponential Moving Average (EMA) recently. At the past count, Nifty50 was down 0.8 per cent oregon 188.05 points astatine 23,330.45, portion astatine the day's debased it deed levels 23,263.15.

Now amid crisp slump, the cardinal scale has corrected arsenic overmuch arsenic 11 per cent from the highest of 26,277.35 levels, deed connected September 27 this year. The EMA is simply a usher that tracks the mean show of the Nifty scale implicit the past 200 days. Investors usage it to place semipermanent trends and gauge marketplace momentum.

As per Bajaj Broking, whenever Nifty touches 200 Days EMA and supra ( Nifty tested the semipermanent mean precocious connected 13th November 2024),  it is often indicative of an accidental for affirmative returns successful the months ahead. History shows beardown returns implicit the mean to agelong word aft specified events,  frankincense needing capitalist attention.

And each clip the level has been reached, the returns person been affirmative successful 10 retired of 11 instances taking 1 twelvemonth arsenic the clip period.  The 1 clip that was the objection was the Covid-19 crash.

Additionally, since 2018, 12 times Nifty touched its EMA and it delivered mean returns of:

+3.0% aft 1 month
+5.5% aft 3 months
+9.3% aft 6 months
+17.6% aft 12 months

Post this the likelihood of affirmative returns grows implicit clip which are arsenic below:

58% chance of gains wrong 1 month.
83% chance within 3 months.
91% chance within 1 year.