Traders and investors frequently use technical indicators to make informed decisions, and one popular tool is the 200-day Exponential Moving Average (200-D EMA). This indicator helps pinpoint important price levels on a chart, useful for both long-term investors and short-term swing traders.

What is 200-D EMA?

The 200-day EMA calculates a stock’s average closing price over the past 200 sessions, placing more emphasis on recent data. It is commonly used to assess overall trends and help short-term traders spot key support or resistance levels. 

When a stock trades above the 200-day EMA, it usually signals strength and buyer interest, while trading below it often suggests weakness and a bearish trend. However, a stock below this level can also present a potential buying opportunity if it shows signs of reversal or appears oversold.

The following stocks are currently trading below their 200-day Exponential Moving Average (EMA)

1. Tata Consultancy Services Ltd

Tata Consultancy Services Limited (TCS), founded in 1968 and based in Mumbai, is a global IT and IT-enabled services company. It offers a wide range of solutions, including AI-powered platforms, cloud services, enterprise software, automation tools, analytics, cybersecurity, IoT, and digital engineering, serving industries such as banking, healthcare, insurance, manufacturing, retail, and public services. 

With a market capitalization of Rs. 11,08,943.82 crores on Tuesday, the stock closed at Rs. 3,065 per share, which is below its 200-day moving average of Rs. 3,469.19 in a day’s time frame. The stock is currently down by 11.66 percent from its 200-day moving average.

2. Trent Limited 

Trent Limited, incorporated in 1952 and based in Mumbai, is an Indian retail company offering apparel, footwear, accessories, food, grocery, and non-food products. It operates multiple brands including Westside, Zudio, Utsa, Samoh, and Burnt Toast, along with retail formats like Star Hypermarket, Booker Wholesale, and online grocery platform StarQuik. The company also provides business support services, franchising, and sells products through e-commerce channels like Westside.com, Tata CliQ, Tata Neu, and My Star App.

With a market capitalization of Rs. 1,74,366.60 crores on Tuesday, the stock closed at Rs. 4,905 per share, which is below its 200-day moving average of Rs. 5,505.45 in a day’s time frame. The stock is currently down by 10 percent from its 200-day moving average.

3. Infosys Limited

Infosys Limited, incorporated in 1981 and headquartered in Bengaluru, provides consulting, technology, outsourcing, and digital services globally, including in North America, Europe, and India. It offers solutions across digital marketing, AI, blockchain, IoT, cloud, enterprise applications, cybersecurity, and more, along with platforms like Finacle, Infosys Equinox, Topaz, and Aster. Serving diverse sectors such as aerospace, automotive, healthcare, financial services, retail, and utilities, Infosys delivers end-to-end technology and business solutions worldwide.

Infosys Limited’s stock closed at Rs. 1,500.60 on Tuesday, with a market capitalization of Rs. 6,23,408.09 crore. It is trading 6.28 percent below its 200-day moving average of Rs. 1,601.16. 

4. Sun Pharmaceutical Industries Ltd

Sun Pharmaceutical Industries Limited, based in India, is a specialty generic pharmaceutical company involved in the manufacturing, development, and marketing of a wide array of branded and generic formulations, along with active pharmaceutical ingredients (APIs).

Its extensive product portfolio covers treatments for chronic and acute conditions, including oncology, hormones, peptides, and steroidal drugs, offered in various dosage forms such as tablets, creams, ointments, injectables, sprays, and liquids. The company also supplies injectables, hospital, and retail products to Rest of World (RoW) markets.

The stock, with a market capitalization of Rs. 3,91,763.41 crore on Tuesday, closed at Rs. 1,632.80 per share, trading below its 200-day moving average of Rs. 1,675.87. It is currently down 2.57 percent relative to its 200-day moving average.

Written by Akshay Sanghavi

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