Stock market: Nifty 500 stocks above 50-day SMAs rise to 50% from 10% in 12 sessions! 

The bulls seem to be in control of the market, with a significant improvement seen in the market breadth of the Nifty 500 universe. The percentage of index constituents above the 50-day simple moving average (SMA) has increased to 50 per cent from 10 per cent twelve sessions ago. This substantial improvement bodes well for the continuation of the ongoing rally, ICICI Securities said on Wednesday.

In a note, the brokerage said a decline in crude oil prices and a cooling off in US 10-year bond yields will further support the rally.

"Any dips from hereon should be viewed as incremental opportunity to accumulate high-quality stocks backed by strong earnings," it said.

The domestic brokerage said Nifty has maintained its rhythm by arresting the corrective phase after limiting an eight-week losing streak and defending the long-term 200-week EMA, which coincided with the April 26 lows of 22,182.

"Consequently, forming a double-bottom pattern. Index has finally logged a breakout from this reversal pattern. Over the past two weeks, the index has entirely recovered from its 12-week decline (24,774 to 22,180). This swift retracement signals a structural turnaround, opening the door for the next leg of the up move," ICICI Securities said.

Noting that Indian market has lagged behind its global counterparts due to AI-driven momentum, ICICI Securities said the recent global sell-off in AI-driven stocks could provide a supportive tailwind for the growth-oriented Indian market, adding that FIIs have seen strongest inflow of over 45,000 crore in first six sessions of the November.

"Mirroring the benchmark move, Bank Nifty has also experienced a faster retracement, recouping its 17-week decline in just two weeks. The structural shift in the banking sector, which carries 37 per cent weightage in the Nifty, will likely drive the Nifty higher," it said.