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
Tata Motors Limited
Tata Motors is a leading Indian multinational automotive company, headquartered in Mumbai and part of the Tata Group. It manufactures a wide range of vehicles, including cars, trucks, vans, and buses, and owns notable subsidiaries like Jaguar Land Rover.
With a market capitalization of Rs. 2,57,326.28 crores on Wednesday, the stock closed at Rs. 699.00 per share, which is below its 200-day moving average of Rs. 817.81 in a day’s time frame. The stock is currently down by 14.5 percent from its 200-day moving average.
Coal India Limited
Coal India Limited (CIL) is the world’s largest government-owned coal producer, headquartered in Kolkata and operating under the Ministry of Coal. Established in 1975, CIL manages 322 mines across eight Indian states and accounts for about 82 percent of India’s total coal production.
With a market capitalization of Rs. 2,48,357.95 crores on Wednesday, the stock closed at Rs. 403.00 per share, which is below its 200-day moving average of Rs. 429.69 in a day’s time frame. The stock is currently down by 6.3 percent from its 200-day moving average.
Trent Limited
Trent Limited is a retail arm of the Tata Group, known for operating popular retail chains such as Westside, Zudio, and Star Bazaar. The company focuses on fashion, apparel, and lifestyle products, with a strong presence in urban and semi-urban markets across India.
With a market capitalization of Rs. 1,90,407.97 crores on Wednesday, the stock closed at Rs. 5356.25 per share, which is below its 200-day moving average of Rs. 6,278.46 in a day’s time frame. The stock is currently down by 14.6 percent from its 200-day moving average.
Varun Beverages Limited
Varun Beverages Limited is one of the world’s largest bottlers of PepsiCo beverages outside the US and a key player in India’s beverage industry. Founded in 1995, it manufactures and distributes brands like Pepsi, 7 Up, Mountain Dew, Mirinda, Tropicana, and Aquafina.
With a market capitalization of Rs. 1,72,306.06 crores on Wednesday, the stock closed at Rs. 509.50 per share, which is below its 200-day moving average of Rs. 578.60 in a day’s time frame. The stock is currently down by 12 percent from its 200-day moving average.
ITC Limited
ITC Limited is a diversified Indian conglomerate headquartered in Kolkata, with business interests spanning FMCG, hotels, paperboards, packaging, agribusiness, and information technology. Known for brands like Aashirvaad, Sunfeast, and Bingo, ITC is one of India’s largest private sector companies.
With a market capitalization of Rs. 5,37,231.16 crores on Wednesday, the stock closed at Rs. 429.30 per share, which is below its 200-day moving average of Rs. 445.39 in a day’s time frame. The stock is currently down by 3.65 percent from its 200-day moving average.
Written by Sridhar J
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