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
Pidilite Industries Ltd
Pidilite Industries is an Indian multinational company primarily known for its adhesives and sealants. Its flagship brand Fevicol is a household name across India, widely used in carpentry and construction. Besides adhesives, Pidilite also manufactures construction chemicals, art materials (like Fevicryl), and industrial chemicals.
With a market capitalization of Rs. 1,48,597.50 crores on Wednesday, the stock closed at Rs. 2921.30 per share, which is below its 200-day moving average of Rs. 2,977.51 in a day’s time frame. The stock is currently down by 2.1 percent from its 200-day moving average.
Varun Beverages Ltd
Varun Beverages Ltd (VBL) is one of the largest franchisees of PepsiCo in the world (outside the US), responsible for manufacturing, bottling, and distributing PepsiCo beverages in India and several international markets. Its product portfolio includes soft drinks like Pepsi, Mountain Dew, Mirinda, and 7UP, as well as bottled water under the Aquafina brand.
With a market capitalization of Rs. 1,64,936.09 crores on Wednesday, the stock closed at Rs. 487.70 per share, which is below its 200-day moving average of Rs. 541.60 in a day’s time frame. The stock is currently down by 9.9 percent from its 200-day moving average.
ITC Ltd
ITC Limited is a diversified Indian conglomerate with business interests spanning FMCG, hotels, paperboards, packaging, agribusiness, and information technology. It is best known for its dominance in the Indian cigarette market, with brands like Gold Flake and Classic, but has made significant strides in the FMCG segment with products like Aashirvaad, Sunfeast, Yippee!, Savlon, and Fiama.
With a market capitalization of Rs. 5,19,603.78 crores on Wednesday, the stock closed at Rs. 414.95 per share, which is below its 200-day moving average of Rs. 431.70 in a day’s time frame. The stock is currently down by 3.9 percent from its 200-day moving average.
Trent Ltd
Trent Ltd is the retail arm of the Tata Group, focused on the fashion and lifestyle segment. Its flagship retail brand, Westside, offers contemporary fashion, footwear, and accessories for men, women, and children. Trent also operates Zudio, a fast-growing value fashion chain, and Star Bazaar, which is involved in grocery and general merchandise retailing.
With a market capitalization of Rs. 1,90,576.83 crores on Wednesday, the stock closed at Rs. 5361.00 per share, which is below its 200-day moving average of Rs. 6,006.57 in a day’s time frame. The stock is currently down by 10.8 percent from its 200-day moving average.
KPIT Technologies Ltd
KPIT Technologies Ltd is a global IT consulting and software solutions provider specializing in engineering services, particularly for the automotive, manufacturing, and energy sectors. With a strong focus on digital transformation and intelligent technologies, KPIT offers services in areas such as embedded systems, autonomous driving, and electrification.
With a market capitalization of Rs. 35,004.05 crores on Wednesday, the stock closed at Rs. 1276.85 per share, which is below its 200-day moving average of Rs. 1,364.89 in a day’s time frame. The stock is currently down by 6.7 percent from its 200-day moving average.
Written by Sridhar J
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