Adani Port, Hero Moto: 86 stocks from Nifty500 can see over 10% upside

Mahindra & Mahindra, Page Industries, TVS Motor Company, and Wockhardt are among the noticeable names that are exhibiting trend reversal.

Domestic equity markets were highly volatile on Friday as investors juggled between largely positive corporate earnings and weak global cues. The benchmark S&P BSE Sensex hit an intra-day high and low of 39,988 and 39,340 levels, respectively, with market breath favouring the bulls.

In such a volatile market, while long-term outlook remains intact, investors tend to read through technical indicators for short-term trading bets. One such indicator is daily moving averages (DMA). The strength, intensity and momentum of this DMA level results in a firm rally that triggers an optimistic sentiment. The widely used moving averages are 50-DMA, 100-DMA and 200-DMA. The recent promising reversal in Nifty50 and the S&P BSE Sensex around their respective support levels coincides with 100-DMA of various stocks.

Nearly 86 stocks from the Nifty 500 universe are trading around their 100-DMA. Besides, nearly 50 per cent of these 86 stocks are exhibiting a reversal near their support average.

Adani Ports and Special Economic Zone, Balkrishna Industries, BSE, DLF, Hero MotoCorp, Jindal Steel & Power, Jyothy Labs, Gujarat Fluorochemicals, Mahindra & Mahindra, Page Industries, TVS Motor Company, and Wockhardt are among the noticeable names that are exhibiting reversal trends. (Check table below)

Source: spidersoftwareindia.com

Source: spidersoftwareindia.com

Going forward, if the reversal support of 100-DMA remains intact, these stocks can even surge over 10 per cent in the near-term on strong volume.