In recent years, the Indian stock market has been a favorite among investors, reaching all-time highs one after another. However, this year, the market has displayed multiple bearish divergence with the 50-day Moving Average Market Breadth (green), meaning that while the index has hit multiple highs, the market breadth has consistently declined.
Despite the Indian stock market being at an all-time high now, only 37.1% of stocks are trading above their 50-day moving average, signaling a weakening broader market and an increased correction risk.
