 "Chart check: 97% Nifty500 stocks trade above their respective 200-DMA")
The sentiment and momentum in the Indian markets these days is that of extreme positivity. Spurred by the hope of a rebound in global economy and encouraging news on Covid-19 vaccine front, both the domestic benchmark indices are making their way into uncharted territory almost on a daily basis, with the Nifty50 index now eyeing the landmark level of 14,000. The overall scenario is that of a strong buying sentiment.
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At current levels, nearly 97 per cent of the stocks in the Nifty500 are safely trading above their respective 200-day moving average (DMA). The significance of this average is that it is widely believed to portray the market sentiment. Stocks crossing 200-DMA are expected to attract more buying momentum with prices seen rallying further. As and when the stocks show sustainability above the 200-DMA, market participants wait for the breakout opportunities for trading purposes as well. Even long-term investments are classified as 'safe' when one possess stocks that are trading above 200-DMA.
The 13 stocks which are trading below 200-DMA are:
13 stocks below 200-DMA in Nifty 500
Source: www.spidersoftwareindia.com
Source: www.spidersoftwareindia.com
In the Nifty Midcap 100 Free stocks, 98 are trading above their respective 200-DMAs. One can clearly observe the firm strength and move midcap stocks are exhibiting from the last few months. Having 98 stocks in optimistic territory shows a strong underneath current that is expected to push the stocks to higher levels. The two stocks trading below the average are: Yes Bank Limited and Future Retail Limited.
ALSO READ: Midcaps, smallcaps set to outperform benchmarks in near-term: HDFC Sec
Similarly, 96 stocks in the Nifty Smallcap 100 Free index are showing a firm upside bias and are tading above their 200-DMAs. Stocks like JB Chemicals & Pharmaceuticals Limited, Laurus Labs Limited, Persistent Systems Limited, PVR Limited, Rain Industries Limited, Suven Pharmaceuticals Limited, Vakrangee Limited, etc are hinting at more upside, going forward, on the charts. The four stocks trading below 200-DMA are
Source: www.spidersoftwareindia.com
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