Nifty set to log 3rd longest technical correction; shallowest in history

The Nifty on Friday is set to register its longest time-wise technical correction (trading below long-term average) since Jan 2012, totalling 160 days. Index is below its 200-DMA since Feb 27, 2026.

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Rex CanoPuneet Wadhwa Mumbai, New Delhi

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The Nifty 50 index on Friday seems set to complete its third-longest correction in terms of the number of trading sessions spent below its 200-day moving average (200-DMA), even as the extent of the decline remains relatively shallow compared with previous prolonged market downturns. An analysis of historical data shows that the benchmark index has now spent 160 trading sessions below its long-term average, marking its longest such stretch since January 2012. The Nifty has been quoting below its 200-DMA since February 27, 2026. However, unlike previous extended corrections, the current downturn has seen a relatively limited gap between the index and its 200-DMA. At current levels, the Nifty quotes 6 per cent below its 200-DMA, which stands at 24,136. The 200-DMA is a widely tracked technical indicator that helps investors gauge the market trend. An index trading below this level is generally seen as being in a weaker trend and vice-versa. The markets, analysts said, have been impacted by the ongoing geopolitical conflict in West Asia, the exodus of foreign institutional investors (FIIs) from Indian equities, rising crude prices and firming bond yields. That apart, investors have rotated out of large-caps into smaller peers and into the primary markets. The broader market resilience in recent months has been more a function of liquidity than earnings, said V K Vijayakumar, Chief Investment Strategist, Geojit Investments.ALSO READ: Nifty PSU vs Private Bank: Which banking index looks stronger on charts? “Strong external headwinds in the form of elevated crude prices and high US bond yields are emboldening bears to build short positions. This is the reason why the market is declining even on days of positive FII and DII buying,” he said. Meanwhile, historical data show that the Nifty has spent at least 150 trading sessions below its 200-DMA on six occasions. The longest such stretch lasted 227 trading sessions, between May 2008 and April 2009, during the global financial crisis triggered by the US subprime mortgage meltdown. The second-longest correction lasted 188 trading sessions on two occasions — between May 2011 and January 2012, and between May and December 2001.