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 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.
Here are the fundamentally strong stocks to watch out
Dixon Technologies (India) Ltd
Dixon Technologies is one of India’s largest EMS providers, specializing in the design and manufacturing of consumer electronics, lighting products, home appliances, and mobile phones. The company caters to prominent brands in both domestic and international markets.
With a market capitalization of Rs. 81,194.3 crores, the stock closed at Rs. 13,470.15 per share on Tuesday’s session, which is below its 200-day moving average of Rs. 14,105.32 in a day’s time frame. The stock is currently down by 4.5 percent from its 200-day moving average.
The company’s revenue rose by 116.9 percent from Rs. 4,820.57 crore to Rs. 10,460 crore in Q3FY24-25. Meanwhile, Net profit rose from Rs. 96.44 crore to Rs. 171.19 crore during the same period. In terms of returns ratio, the company ROE and ROCE should be 24.77 percent and 27.2 percent, respectively.
Trent Limited
Trent Limited, part of the Tata Group, is a leading retail company in India. It operates the popular Westside chain of department stores and also has a significant presence in the fashion, footwear, and grocery retail sectors, through brands like Zudio and Star Bazaar.
With a market capitalization of Rs. 1,86,986.40 crores, the stock closed at Rs. 5,260.25 per share on Tuesday’s session, which is below its 200-day moving average of Rs. 6,288.07 in a day’s time frame. The stock is currently down by 16 percent from its 200-day moving average.
The company’s revenue rose by 37.68 percent from Rs. 3,546.95 crore to Rs. 4,715.64 crore in Q3FY24-25. Meanwhile, Net profit rose from Rs. 374.36 crore to Rs. 497.25 crore during the same period. In terms of returns ratio, the company ROE and ROCE should be 29.14 percent and 30.26 percent, respectively.
Kaynes Technology India Ltd
Kaynes Technology is a leading provider of end-to-end electronic manufacturing services (EMS) and solutions. The company specializes in designing, developing, and manufacturing electronics products for industries such as automotive, medical, industrial, and consumer electronics.
With a market capitalization of Rs. 28,799.09 crores, the stock closed at Rs. 4,499.80 per share on Tuesday’s session, which is below its 200-day moving average of Rs. 5,087.55 in a day’s time frame. The stock is currently down by 11.5 percent from its 200-day moving average.
The company’s revenue rose by 32.22 percent from Rs. 518.71 crore to Rs. 685.82 crore in Q3FY24-25. Meanwhile, Net profit rose from Rs. 45.19 crore to Rs. 66.46 crore during the same period. In terms of returns ratio, the company ROE and ROCE should be 9.13 percent and 11.66 percent, respectively.
Varun Beverages Limited
Varun Beverages is a leading bottling company and a key franchisee of PepsiCo in India. The company manufactures and distributes beverages such as soft drinks, bottled water, and fruit juices under brands like Pepsi, Mountain Dew, and Tropicana across various regions.
With a market capitalization of Rs. 1,80,078.74 crores, the stock closed at Rs. 532.50 per share on Tuesday’s session, which is below its 200-day moving average of Rs. 596.28 in a day’s time frame. The stock is currently down by 10.6 percent from its 200-day moving average.
The company’s revenue rose by 39.47 percent from Rs. 2,676.81 crore to Rs. 3,733.43 crore in Q3FY24-25. Meanwhile, Net profit rose from Rs. 131.97 crore to Rs. 185.15 crore during the same period. In terms of returns ratio, the company ROE and ROCE should be 15.62 percent and 19.98 percent, respectively.
Written by Sridhar J
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