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, which helps smooth out daily price fluctuations and provides a clearer picture of the overall trend.
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 above the 200 DMA, it is often considered to be in a bullish phase, as the long-term trend is upward.
Investors should focus on fundamentally strong stocks trading below their 200-day moving average, as these represent potential value opportunities where solid businesses are temporarily underpriced.
The stocks to watch out for are listed below
Infosys Limited
Infosys is a global leader in technology services and consulting, helping clients in various industries navigate digital transformation. The company provides IT services, business consulting, and outsourcing solutions, catering to clients worldwide.
With a market capitalization of Rs. 7,33,663.48 crores on Tuesday, the stock closed at Rs. 1768.20 per share, which is below its 200-day moving average of Rs. 1,800.48 in a day’s time frame. The stock is currently down by 1.85 percent from its 200-day moving average.
Sun Pharmaceuticals Industries Limited
Sun Pharmaceutical Industries is one of the largest pharmaceutical companies in India, known for its wide range of high-quality generic medicines. It operates globally, with a strong presence in over 100 countries, offering innovative treatments across various therapeutic areas.
With a market capitalization of Rs. 3,87,219.21 crores on Tuesday, the stock is closed at Rs. 1613.65 per share, which is below its 200-day moving average of Rs. 1,731.83 in a day’s time frame. The stock is currently down by 6.8 percent from its 200-day moving average.
HCL Technologies Limited
HCL Technologies is a global IT services and consulting company that provides a broad range of technology solutions, including cloud computing, IT infrastructure, and digital transformation services. It operates across multiple industries and is known for its strong focus on innovation and customer-centric solutions.
With a market capitalization of Rs. 4,43,100.81 crores on Tuesday, the stock closed at Rs. 1636.80 per share, which is below its 200-day moving average of Rs. 1,704.23 in a day’s time frame. The stock is currently down by 4 percent from its 200-day moving average.
Cipla Limited
Cipla is a leading multinational pharmaceutical company based in India, specializing in the development, manufacturing, and marketing of a wide range of pharmaceutical products. The company is known for its focus on affordable and accessible healthcare solutions, particularly in the fields of respiratory, oncology, and antiretroviral therapies.
With a market capitalization of Rs. 1,17,762.24 crores on Tuesday, the stock closed at Rs. 1458.15 per share, which is below its 200-day moving average of Rs. 1,521.34 in a day’s time frame. The stock is currently down by 3.8 percent from its 200-day moving average.
Written by Sridhar J
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