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.Samvardhana Motherson International Ltd
Samvardhana Motherson International Ltd (SMIL), formerly known as Motherson Sumi Systems Ltd, is an Indian multinational automotive components manufacturer headquartered in Noida, Uttar Pradesh, and as a joint venture with Japan’s Sumitomo Electric Industries, the company specializes in producing wiring harnesses, plastic components, and rearview mirrors for passenger vehicles.
With a market capitalization of Rs. 1,09,481.29 crores on Thursday, the stock closed at Rs. 155.60 per share, which is below its 200-day moving average of Rs. 159.15 in a day’s time frame. The stock is currently down by 2.3 percent from its 200-day moving average.
2.Power Grid Corporation of India Ltd
Power Grid Corporation of India Ltd is a central public sector undertaking under the Ministry of Power, Government of India. POWERGRID is India’s largest electric power transmission utility. It operates approximately 86% of the country’s inter-regional transmission networks, transmitting about 50% of the total power generated in India.
With a market capitalization of Rs. 2,73,670.27 crores on Thursday, the stock closed at Rs. 294.25 per share, which is below its 200-day moving average of Rs. 308.34 in a day’s time frame. The stock is currently down by 4.6 percent from its 200-day moving average.
3.Power Finance Corporation Ltd
Power Finance Corporation Ltd is a public sector financial company under the Ministry of Power, Government of India, established in 1986. Headquartered in New Delhi, PFC provides financing for the Indian power sector, including generation, transmission, and distribution projects. It was classified as a ‘Maharatna’ enterprise in October 2021, reflecting its significant role in the country’s infrastructure development.
With a market capitalization of Rs. 1,34,611.15 crores on Thursday, the stock closed at Rs. 407.90 per share, which is below its 200-day moving average of Rs. 445.05 in a day’s time frame. The stock is currently down by 8.4 percent from its 200-day moving average.
4.Sun Pharmaceutical Industries Ltd
Sun Pharmaceutical Industries Ltd is an Indian multinational pharmaceutical company headquartered in Mumbai. It is the largest pharmaceutical company in India and the fourth-largest specialty generic pharmaceutical company globally. It operates in many countries and manufactures a wide range of products, including generics, branded generics, specialty drugs, over-the-counter medications, and active pharmaceutical ingredients.
With a market capitalization of Rs. 4,03,858.21 crores on Thursday, the stock closed at Rs. 1683.25 per share, which is below its 200-day moving average of Rs. 1778.76 in a day’s time frame. The stock is currently down by 5.3 percent from its 200-day moving average.
5.JSW Energy Ltd
JSW Energy Ltd, part of the JSW Group, is one of India’s leading power companies. It generates a diverse energy mix including thermal, hydropower, wind, and solar energy. Headquartered in Mumbai, JSW Energy operates across several Indian states and has international stakes in natural resource companies in South Africa.
With a market capitalization of Rs. 88,812.85 crores on Thursday, the stock closed at Rs. 508.15 per share, which is below its 200-day moving average of Rs. 598.91 in a day’s time frame. The stock is currently down by 15 percent from its 200-day moving average.
Written by Sridhar J
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