Synopsis:
Some stocks that are trading below their 50-day EMA, indicating a potential bounce. Is it worth keeping on your radar?
In the stock market, technical indicators help traders and investors make informed decisions. One commonly used tool is the 50-day Exponential Moving Average (50 EMA), which tracks a stock’s short- to medium-term trend. If a stock trades below its 50 EMA, it often signals weakening momentum or the possibility of a downtrend.
What is 50-D EMA, and why is its support important?
The 50 EMA reflects a stock’s average closing price over the past 50 trading sessions, but unlike the simple moving average, it gives more weight to recent prices, making it quicker to react to market changes.
It is widely used to identify the prevailing trend, act as a dynamic support or resistance level, and signal potential entry or exit opportunities. Traders often rely on the 50 EMA to align their strategies with the broader market direction.
The following stocks are showing signs of trading below their 50-day Exponential Moving Average (EMA)
1. Reliance Industries Ltd
Reliance Industries Limited, headquartered in Mumbai, is one of India’s largest conglomerates with businesses spanning energy, retail, telecom, and entertainment. Founded by Dhirubhai Ambani and now led by Mukesh Ambani, it is the country’s biggest and most profitable private company and is listed among the Fortune 500.
Reliance Industries Ltd, with a market capitalization of Rs. 18,71,405.64 crore, closed at Rs. 1381.70 on Monday, marking an incline of 0.58 percent from the previous close of Rs. 1,373.80. The stock is trading below 2.65 percent below its 50-day Exponential moving average (50-D EMA) at around Rs. 1,419.29.
2. Tata Consultancy Services Ltd
Tata Consultancy Services (TCS), the Tata Group’s flagship company, is a leading provider of information technology services, consulting, and business solutions. For more than 50 years, it has collaborated with some of the world’s largest companies on their transformation journeys, providing a consulting-driven, AI-powered, and integrated portfolio of technology, business, and engineering services and solutions.
With the market capitalization of Rs. 10,90,130 crore, the Tata Consultancy Services Ltd was closed at Rs. 3,011.20 on Monday, down by 0.37 percent from its previous day close of Rs. 3,022.30. The stock is trading 6.39 percent below its 50-day Exponential moving average (50-D EMA) at a price ~Rs. 3,216.65.
3. Infosys Ltd
Infosys is a global leader in next-generation digital services and consulting, providing AI, cloud, and digital solutions to clients in over 59 countries to accelerate business transformation. With an AI-first strategy and a focus on innovation, sustainability, and inclusivity, Infosys continues to deliver strong results while encouraging continuous learning and customer satisfaction. It is the second largest IT company in India.
Infosys Ltd, with a market capitalization of Rs. 5,96,553.55 crore, closed at Rs. 1,435.80 on Monday, marking a decline of 0.82 percent from the previous close of Rs. 1,447.70. The stock is trading below 6.12 percent below its 50-day Exponential moving average (50-D EMA) at around Rs. 1,529.42.
4. ITC Ltd
ITC Limited, India’s largest cigarette manufacturer, was founded in 1910 and has since expanded into a diversified conglomerate with businesses in FMCG, Paperboards & Packaging, Agri Business, and IT Services. The company remains a major player in India’s consumer and industrial sectors, with its operations expanding beyond its tobacco roots.
With the market capitalization of Rs. 5,07,653.37 crore, ITC Ltd was closed at Rs. 406.30 on Monday, down by 1.25 percent from its previous day close of Rs. 411.45. The stock is trading 2.39 percent below its 50-day Exponential moving average (50-D EMA) at a price ~Rs. 416.26.
5. Kotak Mahindra Bank Ltd
Kotak Mahindra Bank is a leading financial services group that provides a wide range of solutions, including retail, corporate, and treasury banking, investment banking, stock broking, vehicle financing, advisory services, asset management, and life and general insurance.
Kotak Mahindra Bank Ltd, with a market capitalization of Rs. 3,97,678 crore, closed at Rs. 2,001.40 on Monday, marking an increase of 1.17 percent from the previous close of Rs. 1,978.20. The stock is trading below 3.44 percent below its 50-day Exponential moving average (50-D EMA) at around Rs. 2072.63.
Written by Akshay Sanghavi
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