ITC, Bajaj twins: 3 in 4 Nifty50 stocks conquer 200-DMA; more upside likely

Among individual stocks, Adani Ports, Axis Bank, Bajaj Auto, Mahindra & Mahindra, Reliance Industries, State Bank of India, Larsen & Toubro and Maruti Suzuki have conquered their 200-DMAs

Equity markets made gained in July, with the Nifty 50 index ralling 8.7 per cent. The index snapped three straight months of losses as foreign portfolio investors (FPIs) turned buyers after being net sellers since October.

With the sharp bounce back, 37 stocks from the Nifty50 basket have moved above their respective 200-day moving average (DMA), reflecting a robust underlying trend. Technically, stocks sustaining over their 200-DMA are equipped with strong upward strength and are less prone to losing ground during a major drawdown in benchmark indices.

Among individual stocks, Adani Ports and Special Economic Zone, Axis Bank, Bajaj Auto, Britannia Industries, Mahindra & Mahindra, Reliance Industries, State Bank of India, Larsen & Toubro and Maruti Suzuki India, have conquered their 200-DMAs.

Further, Eicher Motors, ICICI Bank, ITC, Mahindra & Mahindra, Reliance Industries, SBI Life Insurance Company , and State Bank of India have conquered significant peaks above 200-DMAs, and continue to stay on investors' radar. 

Typically, stocks climbing significant peaks above 200-DMAs trade with upward bias from a medium-term perspective. Any correction could be seen as an opportunity to enter. Such stocks usually surge 20-25 per cent on varied bullish patterns as per technical charts.

So far this year, Coal India and Mahindra & Mahindra have soared 56 per cent and 53 per cent, respectively, while ITC has jumped close to 49 per cent. Altogether, over 25 per cent stocks in Nifty 50, i.e 14 stocks including Hindustan Unilever, ICICI Bank, Eicher Motors and Hero MotoCorp, have zoomed over 10 per cent year-to-date (YTD) regardless of the benchmark indices hitting fresh 52-weeks lows in the current year. 

Here's the 37 Nifty50 Stocks trading over 200-DMA:

Source:- spidersoftware