If a stock breaches its 200-DMA on the downside, it is an indication of underlying weakness. On the contrary, a move above the 200-DMA usually brings back such counters in investors' radar with the stocks likely to gain momentum. For long-term investors, the simple 200-day moving average (DMA) provides a broad outlook of the trend. Analysts prefer stocks trading above the 200-DMA, since they tend to perform better in a trending market. Risk management, hence, becomes comparatively easier with allocation of stocks trading well above their respective 200-DMA levels.
The recent churn in the market has seen 14 stocks surge above 200-DMA. The list includes GMM Pfaudler Limited, Gujarat Alkalies and Chemicals Limited, Heritage Foods Limited, IDBI Bank Limited, Petronet LNG Limited, RITES Limited, Sanofi India Limited, Swaraj Engines Limited and WABCO India Limited. On the other hand, Biocon Limited, Dr. Reddy's Laboratories Limited, Dhanuka Agritech Limited, Godrej Consumer Products Limited, Hindustan Unilever Limited, Nestle India Limited are among the 9 counters that have slipped below their respective 200-DMA.
Source:spidersoftware
To read the full story, Subscribe Now at just Rs 249 a month
Already a subscriber? Log in
Subscribe To BS Premium
₹249
Renews automatically
₹1699₹1999
Opt for auto renewal and save Rs. 300 Renews automatically
₹1999
What you get on BS Premium?
-
Unlock 30+ premium stories daily hand-picked by our editors, across devices on browser and app.
-
Pick your 5 favourite companies, get a daily email with all news updates on them.
Full access to our intuitive epaper - clip, save, share articles from any device; newspaper archives from 2006.
Preferential invites to Business Standard events.
Curated newsletters on markets, personal finance, policy & politics, start-ups, technology, and more.
Need More Information - write to us at assist@bsmail.in