SBI Card, Usha Martin: These 3 stocks crossed 200-DMA; what to expect next?

SBI Card stock is seen trading above its 200-DMA after one month. Technical chart shows, the stock can potentially rally up 15% from present level; read details here

A total of 427 out of the Nifty 500 stocks are seen trading above their respective 200-DMA (Daily Moving Average) also known as the long-term moving average. The 200-DMA, in general, is considered by stock market traders as a key indicator in determining the overall trend of the stock or underlying index.

Stocks or indices quoting above their respective 200-DMAs are considered as positive or bullish stocks, while those trading below this long-term moving average are considered as bearish.

For instance, the market is said to be in an uptrend for the NSE benchmark Nifty 50 index too is seen quoting above its 200-DMA. In fact, the Nifty has now been quoting above its 200-DMA for the last 335 trading days, since April 24, 2023.

 

On Tuesday, the Nifty quoted around 25,050 levels - up 11.4 per cent from its long-term moving average. Meanwhile, 3 out of the 427 Nifty 500 stocks crossed this decisive line in trades today, August 27, 2024. These stocks are SBI Cards and Payment Services, Usha Martin, Tanla Platforms.

Here's a detailed look at individual stock charts for identifying key support and resistance levels going ahead.

SBI Card

Current Price: Rs 737

Upside Potential: 15%

Support: Rs 727; Rs 720; Rs 711

Resistance: Rs 735; Rs 745; Rs 770

SBI Card today was seen trading above its 200-DMA after a gap of one month. Post the breakdown in September 2023, SBI Card had attempted to cross the 200-DMA on three past occasions, wherein twice the stock did cross but soon faltered.

However, unlike the other two occasions, SBI Card seems favourably placed on the technical chart this time around. The 200-DMA at Rs 727 is likely to act as a significant support, as key momentum oscillators are seen trending with a positive bias.

On the weekly scale, the stock is seen attempting to conquer its 50-WMA (Weekly Moving Average) - a level it has failed to conquer since September 15, 2023. The 20-WMA stands at Rs 735.

On the upside, the stock faces immediate resistance at Rs 745; above which a rally to Rs 770 seems likely. The positive momentum can even take the stock potentially towards its 200-WMA, which stands at Rs 847.

On the downside, other than the 200-DMA, support for the stock can be expected around Rs 720 and Rs 711 levels. CLICK HERE FOR THE CHART

Usha Martin

Current Price: Rs 341

Upside Potential: 8.8%

Support: Rs 346; Rs 362

Resistance: Rs 339; Rs 325

After struggling for the last 10 trading sessions below its 200-DMA, Usha Martin stock is today seen attempting to hold above the long-term moving average which stands at Rs 339.

Among the key momentum oscillators the RSI is seen favourably placed, while the MACD (Moving Average Convergence-Divergence) too has turned positive. Hence, the stock is likely to see further gains here on.

On the upside, the stock faces a barrage of hurdles in the form of 50-DMA, 100-DMA and 50-DMA at Rs 346, Rs 362 and Rs 370, respectively. Support on the downside can be expected around Rs 325. CLICK HERE FOR THE CHART

Tanla Platforms

Current Price: Rs 975

Upside Potential: 9.2%

Support: Rs 951; Rs 934; Rs 923

Resistance: Rs 995

After a failed attempt on August 9, Tanla Platforms today is once again seen attempting to close above the 200-DMA, which now stands at Rs 951. In the process, the stock is also seen quoting above its 50-WMA.

On the upside, the stock can potentially rally to Rs 1,065 levels; with interim resistance likely around Rs 995. In case of a dip, support for the stock can be expected around its 200-DMA, Rs 934 and Rs 923 levels. CLICK HERE FOR THE CHART