HDFC Bank, Adani Ent, IEX among 6 stocks to cross 200-DMA in last 2 days

Overall, as many as 464 stocks among the Nifty 500 were seen trading above the 200-DMA highlighting the underlying positive sentiment in the market.

The NSE Nifty50 has seen a strong uptrend in the last seven trading sessions, with the index surging as much as 3.4 per cent to above 19,900-odd levels. The NSE benchmark is now less than 0.5 per cent from its all-time high of 19,992.

Meanwhile, the Nifty 500 index has jumped nearly 4 per cent during this period. The overall breadth of the market too is extremely positive, with as many as 464 out of the Nifty 500 stocks trading above their respective long-term daily moving averages (200-DMA). 

Technically, if the stock is trading consistently above the 200-DMA it is considered to be in an uptrend. Given the fact that more than 90 per cent of the Nifty 500 stocks are presently trading above the 200-DMAs, underlines that the investors’ sentiment is upbeat.

Here is an outlook on the six Nifty 500 stocks that crossed the key 200-DMA in the last two trading sessions:

Adani Enterprises

Last price: Rs 2,554

200-DMA: 2,519

Outlook: Upside seems capped

This is the second attempt of the stock to cross and sustained above its 200-DMA. Earlier in August 2023 too, the stock crossed the 200-DMA, but could only sustain above the same for two trading sessions. One of the key reason for the failure, is that the stock has been trading consistently below its 50-WMA (Weekly Moving Average) since February 2023.

Presently, even as the near-term bias seems to have turned favourable, the upside for the stock seems capped for owing to 50-WMA hurdle at Rs 2,635 followed by resistance at Rs 2,790.

On the other hand, failure to sustain above Rs 2,519 could see the stock slip back to Rs 2,400-odd levels. CLICK HERE FOR THE CHART

Aavas Financiers

Last price: Rs 1,681

200-DMA: 1,672

Outlook: Fresh rally seen above Rs 1,715

The stock price of Aavas Financiers is seen attempting to cross and sustain above the 200-DMA after a gap of 18 months. Above Rs 1,672, the stock has near resistance at Rs 1,715.

The stock needs to cross and sustain above Rs 1,715 for a meaningful rally to emerge. If succeeds, the stock can potentially rally to Rs 2,050-odd levels on the upside.

The overall outlook for the stock seems to be favourable based on the price-to-moving averages action. On the downside, the stock is likely to get considerable support around Rs 1,610. CLICK HERE FOR THE CHART

Indian Energy Exchange (IEX)

Last price: Rs 140

200-DMA: 139.80

Outlook: 17% upside possible

The stock is not only seen attempting to cross and sustain above its 200-DMA, but also above its 50-WMA, which almost coincides with the 200-DMA.

Even as the select momentum oscillators look tired on the daily chart, the momentum seems to be in favour of the bulls on the weekly chart. Hence, the stock is likely to trade with a positive bias and may rally to Rs 164 on the upside. CLICK HERE FOR THE CHART

Gujarat Fluorochemicals

Last price: Rs 3,103

200-DMA: Rs 3,055

Outlook: Fresh rally seen above Rs 3,150

Gujarat Fluorochemicals has been swinging around its 200-DMA for more than a week. The stock needs to stabilize above the 200-DMA for fresh strength. Select momentum oscillators both on the daily and weekly chart seem to be in favour of the bulls for the stock.

On the upside, the stock needs to clear its near resistance at Rs 3,150, in order to trigger a rally up to Rs 3,450. In case of a downturn, the 20-DMA at Rs 2,960 can provide good support. CLICK HERE FOR THE CHART

HDFC Bank

Last price: Rs 1,627

200-DMA: Rs 1,613

Outlook: Multiple hurdles ahead

Shares of HDFC Bank climbed back above the 200-DMA after having slipped below the same in mid-August 2023. However, the current price-to-moving average action does not seem favourable for HDFC Bank, as the 20-DMA stands below all other key moving averages - 50-, 100- and 200-DMAs. 

On its way up the stock may face considerable resistance around Rs 1,635 - 1,650, wherein the 50-DMA and 100-DMA converge. Further higher, the upside for the stock seems capped around Rs 1,700 level. On the downside, the stock could slip back to Rs 1,590, with a possibility of further decline to Rs 1,555. CLICK HERE FOR THE CHART

Uflex

Last price: Rs 468

200-DMA: Rs 454

Outlook: 14% upside possible

Uflex is seen hovering around its 200-DMA for more than a week now. In the previous two trading sessions, the stock slipped below the 200-DMA, but with today's strong up move is seen trading comfortably above the long-term moving average. 

The stock has near resistance around Rs 486, above which it can potentially rally to Rs 537. CLICK HERE FOR THE CHART