The 200-day moving average (200 DMA) is a widely used tool in the financial markets. It is calculated by taking the average of a stock’s closing prices over the past 200 days. This smooths out short-term price fluctuations and provides a clearer picture of the stock’s long-term trend.
The 200-day moving average (200 DMA) is popular because it often acts as a key support or resistance level. When a stock takes support at the 200 DMA, it means the price is holding firm or bouncing back from that level, signaling potential stability or an upward move. This is generally seen as a sign that the long-term trend remains positive.
Here are a few stocks that are taking support from the 200-day moving average (200-DMA)
1. Motherson Sumi Wiring India Limited
Motherson Sumi Wiring India Limited was established in 2020 and is a leading manufacturer of wiring harnesses and electrical components for vehicles. It supplies automotive original equipment manufacturers in India, providing integrated wiring solutions for various vehicle types
With a market capitalization of Rs. 27,432.97 crores on Monday, the stock closed at Rs. 62.05 per equity share, which is currently taking support at the 200-day moving average of Rs. 58.64 in a day’s Time Frame and currently trading at a discount price of 19.42 percent from the 52-week high of Rs. 77.
2. Transformers and Rectifiers India Limited
Transformers and Rectifiers India Limited was established in 1994 and is a leading Indian manufacturer of a wide range of power, furnace, and rectifier transformers. It serves domestic and international markets with high-quality electrical equipment, including up to 1200 kV class transformers.
With a market capitalization of Rs. 14,667.60 crores on Monday, the stock closed at Rs. 488.65 per equity share, which is currently taking support at the 200-day moving average of Rs. 472.21 in a day’s Time Frame and currently trading at a discount price of 24.85 percent from the 52-week high of Rs. 650.23
3. Cummins India Limited
Cummins India Limited was established in 1962 and is India’s leading manufacturer of diesel and natural gas engines. It produces engines for commercial vehicles, industrial equipment, marine, railways, defense, and power generation, supported by extensive service and distribution networks.
With a market capitalization of Rs. 95,329.08 crores on Monday, the stock closed at Rs. 3,439 per equity share, which is currently taking support at the 200-day moving average of Rs. 3,197.33 in a day’s Time Frame and currently trading at a discount price of 17.41 percent from the 52-week high of Rs. 4,163.95
Written By – Nikhil Naik
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