The 200-day moving average (200 DMA) is a widely used technical indicator in financial markets. It is calculated by taking the average closing prices of a security over the past 200 days. One of the primary reasons the 200-day moving average is popular is its ability to act as a support or resistance level.
When a stock’s price is below the 200 DMA, it is often considered to be in a bearish phase. However, it could also present a buying opportunity if the stock shows signs of reversal or if it is oversold.
The stocks to watch out for are listed below
1. ITC Ltd
ITC Limited is a diversified Indian conglomerate headquartered in Kolkata. Established in 1910 as the Imperial Tobacco Company of India, it has since expanded into various sectors, including Fast-Moving Consumer Goods (FMCG), paperboards, packaging, agribusiness, and information technology.
With a market capitalization of Rs. 5,33,226.64 crores on Wednesday, the stock closed at Rs. 426.10 per share, which is below its 200-day moving average of Rs. 441.40 in a day’s time frame. The stock is currently down by 3.5 percent from its 200-day moving average.
Hindustan Unilever Limited is one of India’s largest fast-moving consumer goods (FMCG) companies, with headquarters in Mumbai. It is a subsidiary of the global company Unilever. HUL manufactures and sells a wide range of products including soaps, detergents, shampoos, skincare, toothpaste, tea, coffee, packaged foods, and water purifiers.
With a market capitalization of Rs. 5,58,298.13 crores on Wednesday, the stock closed at Rs. 2376.15 per share, which is below its 200-day moving average of Rs. 2,467.23 in a day’s time frame. The stock is currently down by 3.8 percent from its 200-day moving average.
Coal India Limited (CIL) is the largest government-owned coal mining company in the world, headquartered in Kolkata and operating under the Ministry of Coal, Government of India. Established in 1975, CIL accounts for about 82% of India’s coal production and plays a crucial role in meeting the country’s energy needs, supplying coal to thermal power plants and industries.
With a market capitalization of Rs. 2,47,864.93 crores on Wednesday, the stock closed at Rs. 402.20 per share, which is below its 200-day moving average of Rs. 417.98 in a day’s time frame. The stock is currently down by 3.8 percent from its 200-day moving average.
4. Mankind Pharma Ltd
Mankind Pharma Limited, founded in 1991, is one of India’s leading pharmaceutical companies. Initially focusing on affordable generic medicines, it has expanded into over-the-counter products, diagnostics, and wellness segments. The company has made significant strides in women’s healthcare and has a strong presence in the Indian market.
With a market capitalization of Rs. 98,178.57 crores on Wednesday, the stock closed at Rs. 2379.10 per share, which is below its 200-day moving average of Rs. 2,526.49 in a day’s time frame. The stock is currently down by 5.9 percent from its 200-day moving average.
Blue Star Limited, established in 1943, is a prominent Indian company specializing in air conditioning, commercial refrigeration, and MEP (Mechanical, Electrical, Plumbing, and Fire-fighting) contracting. Headquartered in Mumbai, the company offers a wide range of products and services, including chillers, VRFs, and water coolers.
With a market capitalization of Rs. 33,556.33 crores on Wednesday, the stock closed at Rs. 1632.00 per share, which is below its 200-day moving average of Rs. 1,900.44 in a day’s time frame. The stock is currently down by 14 percent from its 200-day moving average.
Written by Sridhar J
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