NIIT Tech, Trent: 10 stocks that look bullish on moving average indicator

Moving averages play a prominent role in determining the overall market trend. Stocks trading above averages indicate a bullish view, which further leads to an upside rally that capitalises on volume. In short, stocks trading above moving averages witness a rise in volumes as the price starts to gradually move north.
 

Broadly, three moving averages are considered while looking for short to medium-term trade. This includes 50-day moving average (DMA), 100-DMA, and 200-DMA. Among these, the 200-DMA is most applicable. It identifies the price movement from one year's perspective. Another way of analysing the trend is the position of the moving average. If one of the three averages show a strong rebound, then this may appear to be a major shift in the trend.

The most widely used, the 200 DMA, is a technical indicator used to analyse and identify long term trends. Essentially, it is a line that represents the average closing price for the last 200 days and can be applied to any security. Typically, markets / stocks consistently trading below the 200 DMA are considered to be in a downtrend.
 

Moving average strategy:

• 50-DMA crossing 100-DMA and 200-DMA, herein 100-DMA is placed below 200-DMA. For instance, Infosys, Oracle Financial Services Software (OFSS);
   
• A bullish crossover: Here, 50-DMA and 100-DMA cross 200-DMA. These averages might not encounter a close crossover, but fair distances have a significant impact on price.