Half of BSE500 Cos, Including Top Stars, Slip Below 200- DMA

Nearly half of the BSE500 stock have slipped low their 200-day moving average (DMA) after the week- long sell-off triggered by sharp foreign outflow amid rising inflation globally.

There is risk- off sentiment across the globe amid fear of monetary policy tightening by the US Federal Reserve.

Heavyweight HDFC Bank, Hindustan Unilever, HDFC, Kotak Mahindra Bank, Wipro, ITC, and Axis Bank are currently trading below their 200 DMA while the Nifty50 Index slipped below its 100 DMA on Monday.

The 200 DMA is considered a major support level for an index or stock since it is a long- term average.

“Stock falling below their 200 DMA indicates short-term weakness and negative bias with these stock,” said Chandan Taparia, technical analyst at Motilal Oswal Financial Services.

While the Nifty50 index has declined 6.33% over the last week, Nifty Midcap 100 and Smallcap 100 indices fell 8.29% and 9.26%, respectively. Nifty50 is currently trading 3% above its 200 DMA but 2.78% below its 100 DMA.

Among the other large-cap stocks that are trading below 200 DMA are JSW Steel, Adani Ports, Tata Steel, Hindustan Zinc, HDFC Life, and Divi’s Lab. About 58 stocks are trading 15-40% below 200 DMA.

“Indian equities corrected massively, possible reacting to US equities trending lower and rise in crude oil prices,” said Amar Ambani, head – institutional equities at Yes Securities.

“There were no positive triggers to take the market upwards in the near term and which is why volumes in large-cap names are down 20-30% in 2022 so far, as compared to 2021, even when market caps are higher by 20-25% on a year-on-year basis,” S-ET

Similar Posts

Leave a Reply

Your email address will not be published. Required fields are marked *