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:
Varun Beverages Ltd
Varun Beverages Ltd is one of the largest franchisees of PepsiCo in India and across several other countries in Asia, Africa, and the Middle East. The company manufactures and distributes a variety of carbonated drinks, fruit juices, and packaged water. Known for its strong distribution network and efficient supply chain, Varun Beverages has established a prominent presence in the beverage industry.
With a market capitalization of Rs. 1,56,009.87 crores on Thursday, the stock closed at Rs. 461.30 per share, which is below its 200-day moving average of Rs. 501.58 in a day’s time frame. The stock is currently down by 8 percent from its 200-day moving average.
Tata Motors Ltd
Tata Motors Ltd, a flagship company of the Tata Group, is a global automotive manufacturer renowned for its wide range of vehicles, including passenger cars, both ICE & electric vehicles. The company has a strong presence in many countries, with iconic brands like Jaguar and Land Rover under its umbrella. Tata Motors is committed to sustainable mobility, focusing on cutting-edge technology and eco-friendly solutions.
With a market capitalization of Rs. 1,46,170.14 crores on Thursday, the stock closed at Rs. 396.95 per share, which is below its 200-day moving average of Rs. 430.67 in a day’s time frame. The stock is currently down by 8 percent from its 200-day moving average.
Tech Mahindra Ltd
Tech Mahindra Ltd is a leading global IT services and consulting company, providing technology solutions across various sectors, including telecom, healthcare, finance, and manufacturing. Part of the Mahindra Group, It is known for its strong digital transformation capabilities and expertise in cloud computing, cybersecurity, and AI. The company helps businesses improve efficiency and achieve growth through innovative IT solutions, creating value for its customers and stakeholders worldwide.
With a market capitalization of Rs. 1,43,368.74 crores on Thursday, the stock closed at Rs. 1463.60 per share, which is below its 200-day moving average of Rs. 1,527.53 in a day’s time frame. The stock is currently down by 4 percent from its 200-day moving average.
Colgate-Palmolive (India) Ltd
Colgate-Palmolive (India) Ltd is a leading player in the FMCG sector, known for its popular brands like Colgate toothpaste, Palmolive soap, and other personal care and home care products. The company has been a household name in India for decades, offering products that cater to health, hygiene, and well-being. Its commitment to social responsibility is evident through various health and hygiene initiatives.
With a market capitalization of Rs. 62,158.24 crores on Thursday, the stock closed at Rs. 2285.35 per share, which is below its 200-day moving average of Rs. 2,469.12 in a day’s time frame. The stock is currently down by 7 percent from its 200-day moving average.
Tata Consultancy Services Ltd (TCS)
Tata Consultancy Services Ltd (TCS) is one of the world’s largest IT services and consulting firms, offering a wide range of services including software development, cloud computing, AI, and enterprise solutions. A subsidiary of the Tata Group, TCS has a global presence and serves clients across industries such as banking, insurance, retail, and manufacturing. Its commitment to innovation and customer-centricity has led to sustainable growth and global recognition.
With a market capitalization of Rs. 10,74,879.53 crores on Thursday, the stock closed at Rs. 2970.85 per share, which is below its 200-day moving average of Rs. 3,395.14 in a day’s time frame. The stock is currently down by 12.5 percent from its 200-day moving average.
Written by Sridhar J
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