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
Trent Limited
Trent Limited, a part of the Tata Group, is a prominent Indian retail company that operates well-known brands like Westside, Zudio, and Star Bazaar. It primarily focuses on fashion, lifestyle, and grocery retail. With a strong presence in both physical stores and e-commerce.
With a market capitalization of Rs. 1,98,276.69 crores on Tuesday, the stock closed at Rs. 5577.60 per share, which is below its 200-day moving average of Rs. 3,608.36 in a day’s time frame. The stock is currently down by 11.5 percent from its 200-day moving average.
Dr. Reddy Laboratories Limited
Dr. Reddy’s Laboratories is a leading global pharmaceutical company based in India, known for its wide range of generic medications, active pharmaceutical ingredients (APIs), and biosimilars. With a focus on innovation and affordability, Dr. Reddy’s serves markets across the world, including the U.S., Europe, and emerging markets.
With a market capitalization of Rs. 96,158.14 crores on Tuesday, the stock closed at Rs. 1152.40 per share, which is below its 200-day moving average of Rs. 1,280.80 in a day’s time frame. The stock is currently down by 10 percent from its 200-day moving average.
HCL Technologies Limited
HCL Technologies is a multinational IT services and consulting company that provides a range of services, including software development, digital transformation, cloud computing, and cybersecurity. HCL is a key player in the global tech industry, offering innovative solutions to businesses across various sectors, including banking, healthcare, and retail.
With a market capitalization of Rs. 4,15,041.51 crores on Tuesday, the stock closed at Rs. 1529.45 per share, which is below its 200-day moving average of Rs. 1,728.02 in a day’s time frame. The stock is currently down by 11.50 percent from its 200-day moving average.
Dixon Technologies Limited
Dixon Technologies Limited is a leading Indian electronic manufacturing services (EMS) company that specializes in the design, development, and manufacturing of consumer electronics, home appliances, and lighting products. The company provides end-to-end solutions for various sectors, including mobile phones, LED TVs, and home automation.
With a market capitalization of Rs. 77,654.80 crores on Tuesday, the stock closed at Rs. 12925.40 per share, which is below its 200-day moving average of Rs. 14,280.58 in a day’s time frame. The stock is currently down by 9.5 percent from its 200-day moving average.
Written by Sridhar J
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