Insights

Majority Stocks in Nifty trading between 0-20% below their 200 DMA

5 March 2022 • Parikshit Singh

62% Stocks are currently trading between 0 – 20% from their 200 DMA line on the downside. This indicates how majority of Nifty’s stocks are moving away from their mean levels. If more stocks enter this category, there is scope of Nifty entering the oversold zone. This also indicates that the overall index is likely to move down if the trend continues.

Investors should also assess various trigger points driving Nifty”s momentum. High volumes of buying/selling can move stocks away from their 200 DMA, which can prove beneficial for traders. They can take positions to benefit from reversals.

The 200 DMA represents the average level of prices for the past 200 days of closing prices of NIFTY and is known to be a strong indicator of average levels and momentum for NIFTY.

A snapshot of the current position of NIFTY 50 stocks from their 200 DMA:

RANGENO OF STOCKSPercentage of Stocks
< -20%24%
-20% to 0%3162%
0% to 20%1530%
> 20%12%
TOTAL50100%

< -20%: HDFCLIFE, DRREDDY

-20% to 0%: DIVISLAB, UPL, LT, ULTRACEMCO, TCS, JSWSTEEL, GRASIM, HDFC, HDFCBANK, HEROMOTOCO, HINDUNILVR, ADANIPORTS, IOC, BAJAJ-AUTO, BAJAJFINSV, NESTLEIND, KOTAKBANK, M&M, SBILIFE, ASIANPAINT, RELIANCE, SHREECEM, BAJFINANCE, TATACONSUM, WIPRO, ICICIBANK, INDUSINDBK, BPCL, BRITANNIA, AXISBANK, EICHERMOT

0% to 20%: BHARTIARTL, NTPC, TECHM, POWERGRID, INFY, ITC, COALINDIA, ONGC, SBIN, SUNPHARMA, TATAMOTORS, TATASTEEL, TITAN, CIPLA, HCLTECH

> 20%: HINDALCO

Hal Clyde Denison Insights reflect the opinions of only the authors who are associated persons of Hal Clyde Denison Limited and do not reflect the views of Hal Clyde Denison Limited or any of its subsidiaries or affiliates. They are for informational purposes only, and are not a recommendation of an investment strategy or to buy or sell any security, digital asset (cryptocurrency, etc) in any account. They are also not research reports and are not intended to serve as the basis for any investment decision.

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